Friday, July 28, 2006

Information versus Knowledge about the Quixtar Business on the Web

I was reviewing the April 2006 Harvard Business Review magazine article "The World is Round" by Laurence Prusak .It is an absolutely fascinating article and is very much relevant to the Quixtar Business information on the web [including this article :-)].

In this article the author explains the difference between information and knowledge. He says "Information is a message, one-dimensional and bounded by its form: a document, an image, a speech, a genome, a recipe, a symphony score. You can package it and instantly distribute it to anyone, anywhere". I would say we can safely add all the blogs and the content that they carry to this list.

Next in the article comes the punch paragraph I should say. The author continues-"Google, of course, is currently the ultimate information machine, providing instantaneous access to virtually any piece of information you can imagine-including instructions for how to perform a laparoscopic appendectomy. But I'll wager no one would opt to have an appendectomy performed by that young woman in Shanghai no matter how much information she'd gathered on the procedure unless she also had years of hands-on surgical training. Only those years of reading, watching, and doing, under a skilled tutor’s watchful eye, would give her the knowledge to expertly perform the surgery."

This is where I would draw the connection to the Quixtar Business Information on the web (yes this post and this blog included of course). The cost of obtaining information today is almost zero- thanks to the search engines. Then why would companies spend millions of dollars on market research and analysis which they outsource to specialists in that area? It would be ridiculous to think that they can search in Google and obtain the data and thereby gain competitive advantage! Reading all the Quixtar related blogs and websites will not make someone a smart business analyst.

Hold on. As if that is not enough- the author says "Knowledge results from the assimilation and connecting of information through experience, most often through apprenticeship or mentoring. As a result, it becomes embedded in organizations in ways that, so far, have largely evaded codification."

Wow!! I am thinking to myself-did the author really identify mentorship as a key enabler for knowledge? Did he say that most of the time knowledge evades codification? Because a lot of the experts (Quixtar related) I had reviewed on the web attempt to codify what it takes (and what it doesn't take) to go diamond in the Quixtar business. Where as the only ones in my opinion who can attempt to do that are the people who have gone diamond, and more importantly, maintained a qualified diamond status over the years.

And finally the author says "while the cost of obtaining, storing, and moving information has plummeted, the cost of doing so with knowledge hasn’t dropped much at all (in the case of surgical training and some other skills, it has probably increased).Knowledge is time-consuming and expensive to develop, retain, and transfer and that is as true for organizations and countries as it is for individuals".

Over a period of time I have heard of much criticism directed at the system training and the tools in the Quixtar business. To the above quote I should add "duplicate" in addition to "develop, retain and transfer” There is of course a real cost and economics involved with training IBO force, providing the tools and strategies to maximize their success. Of course people who do not realize the distinction between information and knowledge can continue to be cynical about the value of the tools and system education components of the Quixtar business.

In summary, there are three key points that come from this:

  1. The difference between Information and Knowledge
  2. Mentorship as a key enabler to Knowledge
  3. Cost of Information versus Knowledge

The blog which got my attention and made me go back and review my HBR copy is Eclectic Bill's Blog

-Ron

Friday, July 14, 2006

Cult Like Cultures?

I was reading the book 'Built to Last' by Jim Collins and Jerry Porras which is a must read for the management cadre in many top companies.
Chapter 6 really got my attention in relation to the Quixtar business. I have seen and heard many accusations stating that Quixtar and the affiliated LOA (Lines of affiliation) systems are a cult.
Well..., in the subsection titled 'IBM's rise to Greatness' there is a description about Thomas J Watson Sr. and his ideas. It says that he instituted strict rules of personal conduct- he required sales people to be well groomed and wear dark business suits, encouraged marriage, discouraged smoking and forbade alcohol. He created IBM managed country clubs to encourage IBMers to socialize primarily with other IBMers, not the outside world. It says IBMers also sang songs with lyrics such as "March on with I.B.M...Work hand in hand..Stout hearted men go forth, In every land" It says that companies like I.B.M, Walt Disney, Wal-Mart etc indoctrinate people with strong core ideas that are the very essence of their existence and success!
It is quite an interesting read in the sense that Cult like cultures are practiced by visionary companies. The authors also express surprise and discomfort with their discovery of this trait as one of the key differentiating factors that took these companies to what they are today.
The reason I quote this work is because this book is not an opinion, it is a hard nosed objective research about America's greatest companies. I would definitely encourage anyone to read this work-certainly Chapter 6. Of course the chapter clearly states that it is not about cult of personality, but cult of ideologies. The authors also mention about the excessive secrecy at the Walt Disney company. They say that visionary companies indoctrinate people, impose tightness of fit, create a sense of belonging to something special with practical, concrete items such as:
  • Internal "Universities" and training centers
  • Exposure to pervasive mythology of "heroic deeds" and corporate exemplars
  • Unique language and terminology
  • Corporate songs, cheers, affirmations, pledges that reinforce psychological commitment
  • Awards, contests, and public recognition that reward those that display great effort consistent with the ideology
  • Celebrations that reinforce successes, belonging and specialness

amongst many other items.

In my short span as an IBO, I have heard many people comment on the cultish nature of the Quixtar business especially as implemented by the LOA organizations. It just makes me wonder if is true and if so why would it be considered wrong? After all, a certain amount of exclusivity is needed for any organization to be world class. I truly believe that many IBOs get that special sense of belonging and a family. I tend to think that is perfectly legitimate. More later... Ron