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“You have to treat your employees like customers”

southwest

When Ron Bieber twittered this article headline I thought that’s a smart idea. So I followed the tinyurl. Immediate confirmation of the quality of the link came from the fact it was at the signal vs. noise blog (note to any software company - emulate 37Signals three-legged approach for success in community and attention building).

Its a really nice story about Southwest Airlines founder Herbert D. Kelleher, who coined the phrase: “You have to treat your employees like customers”. What an awesome guy. When US pilots applaud an executive at a major airline you know he does things differently. What no strikes? 37Signals then quotes the NY Times on Kelleher and I will too. His ideas are inspirational.

Over the years, whenever reporters would ask him the secret to Southwest’s success, Mr. Kelleher had a stock response. “You have to treat your employees like customers,” he told Fortune in 2001. “When you treat them right, then they will treat your outside customers right. That has been a powerful competitive weapon for us.” As he stepped away from the company this week, his line didn’t change.

“We’ve never had layoffs,” he told me the day before the annual meeting, sitting on the couch of the single messiest executive office I’ve ever seen. “We could have made more money if we furloughed people. But we don’t do that. And we honor them constantly. Our people know that if they are sick, we will take care of them. If there are occasions or grief or joy, we will be there with them. They know that we value them as people, not just cogs in a machine…”

Basically that’s the kind of company that me and Stephen would like to build (which may well be why we’re so slow to hire people). Of course an analyst firm is not much like an airline, and our business very much is our people, but we put family and quality of life first. Our basic position is we’re here to help. You need time off, take it. Whatever you need we’re going to try our best to make it so. We won’t closely manage you, or make you feel like cattle, and occasionally you’ll have a delight-the-employee experience that binds you to us. And that’s why you do fantastic work for clients. Cote is example number one, but hopefully we can do just as good a job serving Tom, our man in Seville. If we do we’re in great shape.

Here is Southwest’s mission statement. Note the focus on employees, rather than “just” customers

We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

Well done Herbert Kelleher for showing us all the way forward for a very 21st century management style… although you did it back in the 20th. Employees, just like customers, have a choice. Churn is expensive. Southwest is 37 years old tomorrow- Happy Birthday! 37Signals and 37 candles… a nice net serendipity.

It seems sometimes customers are a little under-dressed (somewhat hypocritical if the 1960s uniforms were anything to go by, but there you go…). Please leave the clothes on, guys…

Port 25 fighting the good fight: A story of SIP compliance and standards adherence at Microsoft Corporation

I just got back from Microsoft’s Servers and Tools Business (SBT) summit in Orlando. There is plenty to digest. The story that really sticks in my mind though concerns Sam Ramji, director Platform Strategy, and his efforts to ensure better interoperability at the firm.

Sam is the guy, in case you aren’t familiar with him, that announced a Microsoft takeover of Eclipse at EclipseCon 2008 earlier this year. So he clearly has a sense of humor. That said, Sam is crazy serious when it comes to advocating the open mindset at Microsoft, which means he takes a lot of heat from both sides- as Info2 puts it he wears asbestos pants. Sam told us about a recent example of his internal standards work.

His open source lab had been doing some testing of the Asterisk open source PBX and SIP Server, when they found out that the software didn’t work with Microsoft’s SIP softphone. So Sam walks into a design review meeting with Ray Ozzie and representatives of Microsoft Unified Communications (UC) group and asks why Microsoft isn’t supporting SIP. The UC people not surprisingly push back.

But Sam has gone deep in testing- its his job after all to help Microsoft get the facts. Frankly he would get served a new one if he wasn’t totally on top of the issues. It turns out the phone doesn’t work with Asterisk, because the UC team has decided to add some “security extensions” to the standard SIP protocol. Un huh… Open source people will be nodding sagely now, or perhaps spitting blood. Ozzie apparently thought about this for a bit and then simply pointed to a phone jack in the wall and said:

“Its a copper wire. How secure is that?”

Debate over. The UC had to go back to the drawing board. Perhaps surprisingly this example is not an isolated case. Sam also led efforts to create a bridge between Microsoft and the Samba open source file and print server team. Today Microsoft provides the SAMBA community with free MSDN licenses for compatibility testing, bug testing, and now openly sends engineers to SAMBA conferences to help advance the state of the art.

Am I saying that everything is golden now, and Microsoft has turned into an open standards bigot company? Absolutely not. Try using Sharepoint with a non-Microsoft browser, for example. Come on Sharepoint team your product is solid - please allow IE to compete on the basis of implementation. Nobody, least of all Microsoft, will benefit if Mac and Linux users are excluded from Sharepoint conversations. An example- RedMonk and Freeform Dynamics, another open source analysis firm, want to collaborate on some projects, but Freeform is a Sharepoint shop which means neither Stephen (Linux) nor Cote (Mac) nor our newest employee Tom Raftery (Mac) can actually use their collaboration tools. The upshot - we’ll find an open platform to use instead, even if its just something as simple as PBwiki.  

Frankly It is good to know that Sam is there in Redmond, working 18 hour days, providing some balance and pushback when Microsoft product teams make decisions that might hurt interoperability. He is an asset. If you have specific concerns about interop between an open source project and a Microsoft product then Sam is the guy to go to.

 

disclosure: we have done some client work with Sam before, and almost certainly will again.

 

RedMonk, Cote Recognised in Analyst of the Year Survey

award

Its always nice to receive recognition for what you do, particularly when
a. its a surprise
b. its voted for by your customers

So this morning’s coffee sure tasted great. The Institute of Analyst Relations has been running a survey to see what AR people think of the firms they work with. RedMonk achieved 3rd position in US firm of the the year. RedMonk, just behind Gartner and Forrester: I will take it. Thank you customers!!!

I am most proud though to see Coté taking third place in US Analyst of The Year. Now that is a richly deserved award. Coté spent his first couple of years at RedMonk growing into the role, but now he is very clearly making it his own. His analysis is both opinionated and solid, and he does the best job in the company of documenting what he does for clients at the Internet at large. Coté has also led the charge on our new media offerings, RedMonkTV, moderated screencasts and so on. Lets see if we can make it number one for next year. ;-)

Congratulations are also due to David Mitchell from Ovum, who earned a stonking showing across the board, and Ray Wang from Forrester, who just pipped him to top slot as Analyst of the Year. I got third globally.

The poll size was pretty small-only 116 AR people took part- but is still hopefully representative. Independent firms did very well. See also Freeform Dynamics and MWD. Firms that share research for free over the Internet appear to have done well, which would seem to vindicate our open source analysis approach.

According to the blog post by the IIAR:

What came out clearly from the survey was that integrity, independence and market knowledge are the analyst qualities that are most highly valued by AR professionals. It demonstrates very positively how much the IT research industry has matured.

“There’ll Be More Change at SAP in the Next 6 Months Than The Previous 30 Years”

I haven’t written much in the way of news from Sapphire08 in Berlin so far, except for this short piece on green process innovation or the lack of it, but one comment has really stayed with me - the quote I used for the title of this piece. I am not going to name the executive that said these words, but its clear major change is now. For SAP these will be interesting times, in the Confucian sense. The wall is coming down.

berlin wall

SAP traditionally stands for continuity and third mover advantage. Its a very German company with a strong culture of consensus - can you imagine a Silicon Valley firm with a co-CEO setup? The contrast with Oracle’s top down command and control approach could not be any starker. But the purchase of Business Objects may have finally tipped the balance away from the German axis that has controlled the firm for so long. SAP wants to get into situational, unstructured apps that cross boundaries but it will need a new mindset to get there. The company doesn’t currently think in terms that allow for uncertainty- every process must be tightly bound. But managing knowledge is an inexact science. IBM is creating a new brand, Infosphere, to sell into the same space after its acquisition of Cognos (of which more here… For Mash Get Smash)

Some old hands such as Peter Zenke are taking a step back from active day to day management, while other new players are jockeying for position. Zenke I should add has evidently done a more than solid job with SAP’s BusinessByDesign SaaS platform. We were somewhat skeptical at first, but evidence is slowly mounting SAP has built something powerful, with social characteristics that take advantage of the network just as a SaaS app should (the community-based help functions, for example, look promising.) The beta program is being very closely managed by SAP, but early customers like what’s been delivered. [I was going to link to a piece I thought Dennis wrote on the subject of customer adoption but Goog didn't find it].

SAP had three different power centers- Israel, Palo Alto, and Walldorf, but Business Objects brings a cadre of people in San Jose, strengthening the West Coast connection. Ex-CEO and chairman of the supervisory board Hasso Plattner also maintains a fiefdom in Palo Alto focusing on driving design thinking into SAP apps.

In meetings in Berlin you could feel that things had changed. Executives were less relaxed than they had been recently. Some were putting themselves forward more aggressively. Its not clear how everything will shake out, but I tend to agree with the quote: SAP is set to go through a period of substantial and rapid change. The German contingent won’t be taking August off this year…

What does all this mean for customers? Not a whole lot at this point. Don’t expect any sudden product or strategy changes, though there will almost certainly be some changes of personnel before the Autumn.

disclosure: SAP is a customer, and paid for travel and expenses to Berlin. IBM is also a client. Oracle is not.

Picture of where the Berlin Wall used to be courtesy of Nigel James, ace PHP and ABAP developer, currently looking for a position.

On blogging, AR, Adobe Getting It, David Mendels and “Rich Internet Apps: How We Live Now”

One of the intriguing dynamics about being an industry analyst and blogger is that many AR people and executives don’t understand some the dynamics involved. Understandable if frustrating, given the fact the industry analyst business is now fairly mature and has some clear lines of engagement. According to some perfectly reasonable definitions RedMonk is not an industry analyst firm, which is fine by me.

You see we do things differently, so its to be expected that we look kind of funny. Its a core RedMonk belief, enforced by 6 years or experience, that the internet provides the best platform ever designed for peer-review. The internet is not just a publishing mechanism. Its so much more than that. We don’t think people actually need to work at our firm to engage in research with us. Why do we enjoy the unconference format so much? Because we’re all in this together: learning, thinking, debating. At RedMonk we know that not only do we not have all the answers, but that by opening up we become smarter. Which is where it can be a bit frustrating. Many vendors are deeply uneasy about commenting on a blog in public (either because it says something positive “leave it alone” or something negative “how can we fix this privately with a minimum of fuss”). IBM for example, for all its written blog policy, rarely comments on Monkchips, even when articles are widely read, and or passed around behind the firewall. RedMonk blogs are at their best though when fixes, complaints, agreements and so on are written into the blog (research as social object) itself. Participation makes the Internet better. It makes us all smarter.

At this point I would just like to change gear, to commend Adobe generally, and Senior Vice President David Mendels specifically, for understanding the read/write dynamic. David is a dedicated commenter, if not a prolific blogger. He has recently decided to leave Adobe, which will be a loss to the company (not that it doesn’t have a deep and wide technical management bench). David deserves massive credit for helping to open up the company’s platforms, setting it on a new course. Think Flex (open sourcing the SDK), PDF (From Open Format to Open Standard), Tamarin, Open Screen Project and so on. David is a deep thinker and it has been a privilege working with someone that takes RedMonk’s passion about openness in such good heart. I remember our first meeting over dinner when everyone else was ashen-faced as we went at it hammer and tongs about whether or not PDF was an open standard. I was getting kicked by people under the table, but David was engaging, in both senses of the word.

A few weeks back in San Francisco we ran an unconference, which Stephen summed up well here. I wrote up one of the sessions in a piece entitled Rich Internet Applications: “This Conversation Is Bullshit”. So imagine how pleased how I was when David, one of the progenitors of the term Rich Internet Applications, instead of getting all defensive, opened up and put a solid thesis forward. I am going to publish it here again in full. Read it. Think about it. This is a guy totally invested in RIA, with a responsibility to shareholders and customers, and he uses a blog to put forward a simple but powerful thesis which might be summed up simply: RIA, Its How We Live Now. Never mind all the technology implementation details - what matters is a better web experience. I am egotistical enough to think RedMonk helped David come to this pragmatic view. And I find it interesting that a guy who is currently easing himself away from his corporate duties is still helping to set the record straight.

I was one of the people involved in coining the phrase “RIA” at Macromedia in the early 2000s (along with a core group of Jeremy Allaire, Kevin Lynch, and Adam Berry if I recall. I am not not sure who first hit on the final coinage, it was the product of a series of discussions.).

Here is the thing: it had a very clear meaning *at the time* and was a clear contrast to the prevailing mass of applications on the web. Now that the entire web has evolved dramatically, the contrast is largely gone and the phrase is not less meaningful, but certainly less useful.

At the time, we were in a world of page based web apps. Applications that were using the page request model of the browser to deliver very limited interactivity and client side functionality, and led to frustrating repeated refreshes of the page to do anything. The iconic example we and many used at the time was the Broadmore hotel reservation site. As a Web 1.0 app, it was a long series of HTML pages just to complete a hotel reservation, and it suffered from all the problems of the day (eg, if one made an error and tried to go back, you lost all the info you had entered in the previous pages and had to start over.)

What we saw them do was create a single screen application with rich interactivity on the client, but still all of the benefits of being a web based application (nothing to install, back end connectivity for inventory and other data using XML, use of client side media/animation to guide the user, reachable through any browser, etc.) We really looked at this as the best of web applications and the best of desktop applications: rich connectivity, platform independence, no install, lightweight as well as rich client side logic and interactivity, ability to integrate rich media and communications. But we dropped the baggage of the page based metaphor that basically required a page refresh for everything and got beyond the layout/graphics/media constraints of HTML.

So I think the definition made quite a lot of sense, and it was I think a very valuable coinage to capture an emerging class of application that was radically better than the mainstream at the time.

Now, at that time, much of what I described as RIA could *theoretically* be done with DHTML (now called AJAX) but the reality is that it was not yet sufficiently browser independent and there was little uptake of it after the first burst (and abuse) of DHTML in the late 90s.

Fast forward to today. The term is less useful because it describes the mainstream. Today a large percentage (a majority?) of web applications are “single screen” and use AJAX techniques to update the screen without refreshing the page gratuitously and the major browsers and JavaScript libraries are sufficiently mature that it is quite possible to create platform/browser independent apps with AJAX. Similarly, the use of rich media, usually Flash, is widespread. Of course, over this 8 years, the Flash Platform approach has matured with richer frameworks (Flex..), tooling, components, messaging, and even richer media (H.264 video, for example). But the paradigm is still the same as we saw when we coined the phrase RIA, it just isn’t quite as “unique” and a contrast to the mainstream that it was. Debating the meaning of the phrase “RIA” has become kinda like debating the meaning of the phrase “application” because most are RIAs. So a more interesting debate (to me) would be: OK, so (a) how can we advance the state of the art to build/debug/maintain such applications rapidly and (b) what is the next major paradigm shift in a world where small screen internet connected non-PC devices out number PCs.

Cheers,

David
Adobe

Right on David. As if to further confirm my thesis James Ward, a buddy of mine, also posted on my blog to clarify his position with respect to human to service interactions.

What is the takeaway for company execs? Comment on blogs. It won’t hurt you. Its important to join the conversation. There are other ways to gain clarity, or obtain a correction, than account control. You can engage and it will help all of our research agendas.

Adobe and IBM are both clients.

Note to Microsoft: You Need to Identify The Real Competition

Like Tim, I have been wondering about Microsoft’s pursuit of Yahoo, and more importantly, its desire to “kill google”. I mean nobody thinks Microsoft would give Yahoo a second glance were it not for the spectre of GOOG in the background, do they?

It seems to me that Microsoft’s most important competitor is Apple, not Google. Google’s revenues don’t actually hurt Microsoft, they just grow Google. But if Microsoft wasn’t fully aware of just bad its core business is hurting after it announced revenues fell 24% year over year, last week’s news from eWeek should serve as another glass of water on the head on the pillow. While Microsoft is dreaming sweet dreams of out-searching Google, Apple has taken 2/3 of the $1000+ PC market.

Arguably Microsoft needs to compete against Google to drive its share price up, but fundamentals are surely far more important. Protect the franchise, guys. Its very important that Microsoft focuses on delivering better user experiences, rather than just trying to be best Google. From that perspective the real wake-up call should have been Vista. Microsoft needs to fix the problems it has, not the problems it would like to have.

I want to make it very clear here that I do think Microsoft is doing a lot of things very well at the moment - its server business for example, is going from strength to strength - but competing against Apple isn’t one of them. I still find it very hard to believe for example that Microsoft now apparently has poorer driver support than Linux or Apple. What used to be differentiators are now drags. Get back to basics would be my advice, and ask yourself - where do you want to go today?

disclosure: Microsoft is a client. I currently run XP, but the plan is to move over to Open-Solaris as a primary laptop OS for a while.

Announcing New Line of Business, New Analyst: Greenmonk’s Tom Raftery

tommo

As I explained over at Greenmonk I have been biting my tongue for a couple of days on this one, since Tom Raftery accepted my offer of employment at RedMonk.

We’re starting a new line of business under the Greenmonk name, and Tom will allow me to drive a Green and sustainability research agenda and advisory services without compromising my commitment to RedMonk’s traditional middleware, developer and open source business. If anyone would like to sponsor the GreenMonk blog I would be happy to hear from you. In a special one time offer I will give you pride of place for six months for $3000 dollars.

So what is Greenmonk and how is it different from RedMonk (I really wish I had Stephen’s Q&A skills)?

While there are clear similarities because be applying RedMonk’s open source analysis model to a new space, there are also some clear differences. RedMonk focuses on technology itself, while Greenmonk is going to look at how technology is applied. How can we use what we have learned in IT to improve energy consumption in the broad sense. We talk about workload management in IT but don’t reapply the discipline to our use of energy except in exceptional cases such as IBM’s customer Delaware Electricity.

This week saw American Airlines introduce charges for carrying bags in the hold. British Airlines claims smaller European airlines are unsustainable once oil is above $80. This week oil hit $135. By year end its surely going to hit $200… which Greenmonk believes will begin to drive massive innovation. The constraint has arrived. Now we need to start designing around it.

Whether we’re talking about traveling less, heating buildings using excess energy from data centers, only buying power when its cheap because the local wind farms are working efficiently, dealing with Green Tape (the rise of new Carbon and pollution related regulations). There is the moral imperative to digitise everything, which I call Bit Miles. There is a lot going on. Companies such as Nortel and Cisco are now competing on the basis of energy efficiency (see the fight going on in the comments on this blog). We want to help businesses contextualise and prioritise, deal with the Risk that spiking energy costs bring. How can IT focus on the really big problems. We don’t intend to focus on the Green Data Center, but note that Tom recently built a hyper efficient plant in the Cork Internet Exchange. He has real world experience of energy demand management, design and innovation.

RedMonk prides itself on calling trends and futures. We’re going to bring this experience of trend watching and analysis to the green space. The new competitive landscape for all businesses is going to include a green is lean component. We’ll be working to help businesses understand the change.

Finally in terms of Tom’s skill-set we have a guy that is made for RedMonk. He is a great communicator and has a brilliant reputation as a social media expert, and you all know how much we love using the latest tools to help build our communities, and so make us smarter than the competition. Tom is @tomraftery on twitter. Please follow him. He has been podcasting for years, so expect us to establish a Greenmonk series. Again once we get started we’ll be open to sponsorship offers.

So grassroots and top-down analysis and advisory. That’s Greenmonk. Welcome to Tom. Expect some new client announcements in the very near future. I am close to closing a couple of deals. This space is exploding. The other night when I heard back from Tom I was in a great optimistic mood. I told my wife: I feel like a businessman. That is I am going after a market opportunity in exactly the right way- by growing to meet the demand. It’s exciting.

The Difference Between Press and Bloggers

Yesterday Oliver posted a couple of images that made an interesting juxtaposition.

I leave it to the reader to work out which are the bloggers…

links for 2008-05-19

links for 2008-05-16

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