Microsoft Says Goodbye to its Stacking System

Microsoft has revamped its performance review process. It axed the "stack ranking" that pitted employees against each other.

Microsoft has revamped its performance review process. It axed the “stack ranking” that pitted employees against each other.

Resource: http://money.cnn.com/2013/11/13/technology/enterprise/microsoft-stack-ranking/index.html

A recent CNN story, “Microsoft Kills Employee Ranking System”, reported that the software giant has decided to remove its “stack ranking” system of reviewing employees. Microsoft managers had to rank their employees in order of 1-5 in ranking, and no matter how good any of the employees were, some of them had to get the low ranking of a 5. Even the most talented engineers hesitated on working with a group of equally talented engineers, because one of them was going to end up ranked as a 5, so many of them resisted joining the best teams. The assessment method turned employees against one another through unhealthy internal competition and reduced collaboration on projects. Microsoft reports that it now focuses more on personal performance and teamwork that may benefit the company, “which means ‘no more curve’ and ‘no more rankings’”, according to Lisa Brummel, head of Microsoft HR. I support Microsoft’s decision with this change because the original stack ranking system was designed for the manufacturing industry where everyone in a department does the same job, so the stacking method made assessment an easier, more precise way to measure performance. As a software company, Microsoft requires employees who display a combination of innovation, teamwork and intellectual ability, so they could potentially approach a similar task in widely different ways, yet still attain worthwhile results. Using the stacking system was not just harmful to employee morale, but was also counterproductive for the company. When people at the bottom left the company in significant numbers, others further up the line tended to follow in ‘bursts’ as the curve started moving ‘up’. In the end, overall employee contentment suffered and cooperation declined because the staking review system was causing repeated episodes of uncertainty and unhealthy competition among employees. With the impending retirement of Steve Ballmer comes the end of the “rack ‘em, stack ‘em, and sack ‘em” days in the human resources department. Good riddance.

Reference: Pepitone, Julianne. “Microsoft Axes Controversial Employee-ranking System.”CNNMoney. Cable News Network, 13 Nov. 2013. Web. 18 Nov. 2013. <http://money.cnn.com/2013/11/13/technology/enterprise/microsoft-stack-ranking/index.html>.

Apples, Apples, Everywhere

Apple is the No. 1 brand worldwide, according to consultancy company Interbrand.

Apple is the No. 1 brand worldwide, according to consultancy company Interbrand.

Resource: http://www.nydailynews.com/news/world/apple-1-brand-coke-fizzles-article-1.1472322

I read an interesting blog post by one of my classmates, Vincent Li, describing some of the reasons why Apple has become one of the world’s most successful brands. His article made me realize that since I came to Canada a few years ago, almost of the electronic devices I now use are made by Apple. The company has beaten out a lot of competitors over the years, primarily through elegant design innovation, clever application of technology, and advanced psychological marketing. Vincent’s post talked about how Steve Jobs never gave up, from his startup days in his parents’ garage, to being fired as head of Apple, then on to founding Pixar Studios, then coming back to turn a souring Apple into the most valuable company in the world. Through all kinds of difficulties, from taking on IBM’s monopoly in the computer market to the competition with his arch-rival Bill Gates of Microsoft, he persisted. Steve Job’s story reminds me of the COMM 101 Lecture: Innovation & Entrepreneurship, which answered some key questions I had about the purpose of entrepreneurship in serving others by putting one’s own dreams into action. As Jobs, himself, so aptly put it “I want to put a ding in the universe.”

Reference: Li, Vincent. “The Reasons of Apple Becoming the No.1 Brand.” Sauder Students Blog. N.p., 7 Oct. 2013. Web. 18 Nov. 2013. <https://blogs.ubc.ca/lichengzhi/>.

How Netflix Gets to Know What Its Customers Want

When Netflix launched in the Netherlands last month, Kelly Merryman, the company’s vice-president of content acquisition, told a reporter that her company purchased Prison Break partly because of its popularity among the Dutch torrenting crowd.

When Netflix launched in the Netherlands last month, Kelly Merryman, the company’s vice-president of content acquisition, told a reporter that her company purchased Prison Break partly because of its popularity among the Dutch torrenting crowd.

Resource: http://www2.macleans.ca/2013/10/10/pirate-raid-22/

In Commerce 101, we have discussed Netflix and did a business case analysis of the company. Now, whenever I’m searching online for business news, I always check for news about Netflix; today I found an interesting blog post “How Netflix Knows Who Wants to Watch What” by Nick Taylor-Vaisey, which addresses how Netflix comes to know their customers’ preferences. Nick suggests that the company has its snoops in the dark corners of the Internet, looking very carefully at file-sharing websites and purchasing those shows that are most popular among the legions of bit torrent pirates. That practice seems to comply with what we talked about in Commerce 101; that is, if you want to increase sales and profits, first you establish your company’s brand position and value proposition and target a specific customer segment to which you direct your consistent marketing message. I consider Netflix to be in an excellent position to benefit from its clever application of IT infrastructure and information systems to accumulate and measure the information supplied by their customers. The company should also run more on online surveys to better understand the wants, needs and preferences of its users and employ those survey responses to inform their marketing practices and drive revenues.

Reference: Taylor-Vaisey, Nick. “Business Blog.” Macleansca How Netflix Knows Who Wants to Watch What Comments. N.p., 10 Oct. 2013. Web. 18 Nov. 2013. <http://www2.macleans.ca/2013/10/10/pirate-raid-22/>.

 

Buying Gold – China Takes Over First Place

Demand for gold in China is surging despite slower economic growth.

Demand for gold in China is surging despite slower economic growth.

Resource: http://money.cnn.com/2013/11/15/news/economy/china-gold/index.html?iid=SF_BN_River

According to CNN, the latest World Gold Council report claims “China Becomes World’s Top Gold Buyer”, by buying up 798 tonnes of the precious metal, relegating India, at 715 tonnes, into second place. The report predicts that China may surpass the 1000 tonnes mark by year’s end. The big increase in Chinese appetite for the yellow metal is due to the growth of the middle class and disposable incomes in China. A secondary reason for China’s push into the top spot is that the government of India has been restricting gold imports and raising taxes; thus lowering demand for gold by Indian consumers. The report repeated a common claim among financial advisors, that “gold is often seen by investors as a safe haven”, and points at the fact that the global market for the metal has been resilient, even though investors have fled from gold-backed exchange-traded funds. My personal take on buying gold as an investment is that, unlike stocks and bonds that allow you to gain extra value from passive income (interest and dividends), the only payback you can actually get from gold is if the price per ounce rises and you sell it before it drops again. The challenge with investing in precious metals is predicting which way the price will go after you buy it, and whether or not you can afford to hold onto it until its value reaches your target? Apparently, the government China feels confident that their time to buy is now. As the ancient Chinese proverb goes “An inch of time is an inch of gold but you can’t buy that inch of time with an inch of gold.”

Reference: Yan, Sophia. “China Becomes World’s Top Gold Consumer.” CNNMoney. Cable News Network, 15 Nov. 2013. Web. 18 Nov. 2013. <http://money.cnn.com/2013/11/15/news/economy/china-gold/index.html?iid=SF_BN_River>.

Will BlackBerry Survive?

BlackBerry will soon collapse like Nortel.

BlackBerry will soon collapse like Nortel.

Resource: http://www.cbc.ca/newsblogs/yourcommunity/2013/11/blackberry-will-soon-collapse-like-nortel-cbcnewsca-readers-say.html

Yesterday I read a business post by Guang Yow Low concerning BlackBerry. As the once-dominant smartphone maker continues to struggle to survive, it is hoping that the new BlackBerry 10 operating system will attract more customers and stop the financial hemorrhaging. Despite the positive feedback about the new OS, Google’s Android and Apple’s iOS continue to dominate the smartphone sector. Is there really nothing BlackBerry can do to reverse its recent bad fortunes? Can the company even survive? I believe that there are actually some strategies that BlackBerry can consider to fix their main problems. Perhaps the company could consider some of the ideas proposed in an InformationWeek article entitled “BlackBerry’s 11th Hour: How It Can Survive.” BlackBerry can first focus its advertising on its points of differentiation, especially the excellent keyboard and TimeShift camera, which are unique and unavailable on Apple or Android devices. Also, BlackBerry shouldn’t aspire to become another iPhone or Android, but turn instead to customization and design — such as offering a palette of case colors and the ability to hide apps on the home screen – in order to garner attention in a market influenced by looks over function. Moreover, Android and Apple are both succeeding with a suite of applications geared more toward entertainment, not productivity, which has always been BlackBerry’s forte. A swift move to target third-party developers to create productivity apps, such as DropBox and Evernote for example, might help reverse the tide for this once-smartest of smartphone makers that has been looking kind of dumb in recent times.

Reference: Low, Guang Yow. “Will BlackBerry Rise Again.” Guang Yow Lows Blog. N.p., 7 Oct. 2013. Web. 18 Nov. 2013. <https://blogs.ubc.ca/guangyowlow/>.

 

PS4 VS. Xbox One: Which One Would You Choose?

Banners for the Sony PS4 and Xbox One gaming systems hang at the GameStop Expo in Las Vegas in August. The two systems will be commercially available this month.

Banners for the Sony PS4 and Xbox One gaming systems hang at the GameStop Expo in Las Vegas in August. The two systems will be commercially available this month.

Resources: http://www.cbc.ca/news/technology/playstation-4-vs-xbox-one-review-how-they-match-up-1.2424315?cmp=rss

Sony’s launch of its PlayStation 4 on November 13th has added more heat to the already-hot market of gaming consoles, selling more than a million units within the first 24 hours. The fire is sure to get even hotter with the impending release of Microsoft’s Xbox One. According to CBC.ca’s coverage of the launches, “PlayStation 4 vs. Xbox One Review: How They Match Up” at, it appears that two big questions, “Which one should I buy?” and “What’s the difference?” are what console buyers are asking. Both platforms show big improvements in the fidelity of how graphics are rendered, with both displaying major advances over their respective previous versions. Some elements are difficult to compare because they rely on the personal preferences and discrimination of each player. For example, stone walls and riverbeds in Call of Duty looked good on the old Xbox 360, but on the Xbox One they pop into three dimensions. A head-to-head comparison of the two platforms produces no huge difference between them because Sony and Microsoft use different approaches for gamers. The PS4 serves up a great controller and slightly better graphics at a lower price point, while the Xbox One offers more big games up front, with at least one of them likely to become a blockbuster. The two approaches demonstrate the importance of offering points of parity that ensure that each product meets the specifications that are required to be a contender in the market, yet also establish worthwhile points of difference that set each of them apart for the purpose of brand positioning and value proposition. We will see, as the holiday season plays out, which platform wins the hearts and minds of more consumers. Looks like it’s game on!

Reference: Nowak, Peter. “PlayStation 4 vs. Xbox One Review: How They Match up – Technology & Science – CBC News.” CBCnews. CBC/Radio Canada, 13 Nov. 2013. Web. 18 Nov. 2013. <http://www.cbc.ca/news/technology/playstation-4-vs-xbox-one-review-how-they-match-up-1.2424315?cmp=rss>.

The Downfall of HTC

As the world's 4th largest handset manufacturer has seen its once popular line-up of innovative devices steadily lost ground to both Apple and Samsung.

As the world’s 4th largest handset manufacturer has seen its once popular line-up of innovative devices steadily lost ground to both Apple and Samsung.

Resources: http://www.thetelecomblog.com/2011/11/29/htc’s-struggles-mirror-nokia-downfall/

Two years ago, HTC, the Taipei-based mobile devices maker, was riding a leader in the exploding sales of premium smartphones globally. It was racking up awards, enjoying record stock prices and a string of acquisitions, and was busy poaching rival executives for a continued assault on the dominance of Apple, Samsung and Research In Motion (BlackBerry). Yet, two years later, its stock price has fallen beyond what anyone would have predicted, and profits have been falling every quarter. A former mobile phone analyst with Topology Research Institute in Taipei described one of the main problems of HTC: “Their portfolio was a mess and they wanted to make Android, Microsoft and Facebook phones. They should have concentrated on Android, instead of wasting their money on Windows and Facebook.” Also, C.K. Lu, an analyst with Gartner, said, “HTC doesn’t know how to make a cheaper phone. It isn’t in their DNA. They don’t know how to do it by cost, or differentiate. They usually downgrade from their premium segment and that doesn’t work. It’s a very, very old-fashioned approach.”

For HTC to get back to the highs, it should focus its effort on its accounting and marketing strategies, and make a decision to become a specialist in just one or two single market segments where it has a distinct advantage, rather than trying to chase every market segment all at once.

References: Cunns, Cain. “A Long Fall for Taiwan Smartphone Maker.” The New York Times. N.p., 08 Sept. 2013. Web. 08 Sept. 2013. <http://www.nytimes.com/2013/09/09/technology/a-long-fall-for-taiwan-smartphone-maker.html?pagewanted=all>.

The Way to Build Up Customers Relationship

Companies can take any number of steps to help build long and lasting relationships with their customers.

Companies can take any number of steps to help build long and lasting relationships with their customers.

Resources: http://digdevdirect.com/Blog/email-best-practices-for-developing-and-maintaining-crucial-customer-relationships/

Customers represent the engine that drives business, because without them no company can operate successfully. That is why good customer relationships are so important for the sustenance of any enterprise. Of course, customers have a wide variety of demands and preferences, so building strong client relationships can be challenging. Mike Muhney, the CEO and owner of VIPorbit, a contact management software company, suggests some things to help, such as giving clients your full attention when meeting with them, turning off smartphone alerts, avoiding interruptions, and reducing over-reliance on computers and electronic equipment when engaging with clients. To earn their respect, you should value their time as much as your own, and not keep them waiting to be served. To maintain that respect, listen carefully to their requests and try to come to a satisfactory agreement that meets their needs and those of your company.

References: Mielach, Dave. “4 Ways to Build (and Improve) Customer Relationships.”BusinessNewsDaily.com. BusinessNewsDaily Writer, 25 Sept. 2013. Web. 08 Oct. 2013. <http://www.businessnewsdaily.com/5179-build-customer-relationships.html>.

Being a Leader Over a Dictator of Your Workers

Is your ego getting in the way of getting things accomplished?

Is your ego getting in the way of getting things accomplished?

Resources: http://www.businessnewsdaily.com/5224-your-ego-may-be-killing-your-workers-performance.html

Leadership is one of the most important skills in business because it can help a group leader organize the team and lead it to success. However, when a leader exerts too much power over others or acts egotistically, the team’s overall performance can be negatively affected. According to the article “Is Your Ego Killing Your Workers Performance?” from Business News Daily, the subjective experience of power increases formal leaders’ tendencies to verbally dominate social interactions and diminishes perceptions of openness, which, in turn, diminishes team performance. Being self-centered would not only suggest that they were not open to the ideas of others, but would also diminish the desire of others to contribute freely; therefore, causing team members to be less spontaneous and enthusiastic, which could hurt the performance of the team. Many great leaders use a relatively flat organizational structure, promote an egalitarian culture, encourage open team communication, and encourage all members to question the legitimacy of formal leaders who take a dominating approach to social interactions. This article spoke to my own leadership ambitions, and made me rethink the importance of first being a great listener.

References: Brooks, Chad. “Is Your Ego Killing Your Workers’ Performance?”BusinessNewsDaily.com. BusinessNewsDaily Contributor |, 02 Oct. 2013. Web. 08 Oct. 2013. <http://www.businessnewsdaily.com/5224-your-ego-may-be-killing-your-workers-performance.html>.

From Rags to Riches – Cheap Clothing At What Cost?

Rescuers work after a building housing several garment factories collapsed in near Dhaka, Bangladesh, on April 24, 2013. After the deadly building collapse, Walmart released a list of factories it had banned. But it has continued receiving shipments from two of those factories

Rescuers work after a building housing several garment factories collapsed in near Dhaka, Bangladesh, on April 24, 2013. After the deadly building collapse, Walmart released a list of factories it had banned. But it has continued receiving shipments from two of those factories

Resource: http://www.propublica.org/article/walmart-accepted-clothing-from-banned-bangladesh-factories

Some of America’s biggest retailers are facing pressure from many sources to improve safety practices in Bangladesh garment factories, following the collapse of the Rana Plaza near Dhaka. In response, Walmart has banned more than 200 factories from producing its merchandise due to serious safety issues, labor violations and/or unauthorized subcontracting; yet some of those factories are still shipping their products to Walmart stores. The retail giant claims that those shipments continue because the products are not a Walmart house brand.

Such a dubious ethical stance brings into question just whose standards such factories need to meet in order to be permitted to be sold by influential retailers such as Walmart.

While some retailers have already signed an accord to pay for fire and building safety upgrades of Bangladesh factories, Walmart has not yet done so, choosing instead to work on an alternative plan that the company claims will improve safety faster, but which is not legally binding.

Most logical people would consider it obvious that it is not a smart business practice to force employees to work in an unsafe or unhealthy environment. Such behavior might bring additional profits for a while, but eventually it will destroy the reputation of a company and its leaders. Worse, it can lead to dissatisfied workers, workplace injuries and illness, and even death. Is that the price we are willing to pay for a cheap shirt and a little extra profit?

References: Grabell, Michael. “Donate.” Top Stories RSS. ProPublica, 12 June 2013. Web. 08 Oct. 2013. <http://www.propublica.org/article/walmart-accepted-clothing-from-banned-bangladesh-factories>.