Updated August 21, 2008 at 11:02 AM PST with comments from Glassdoor's CEO.
Glassdoor.com uses an online questionnaire so employees can rate their companies and CEOs. I took the questionnaire. It's all the usual stuff, like what do you think of the leadership abilities and competence of senior management, would you recommend your company as a place to work, that sort of thing.
I thought it would be interesting to track the stock performance of the
public companies with CEOs that had the highest approval ratings versus those with the lowest approval ratings.
Guess what I found?
Over the past five years, shares of all the companies whose CEOs had the highest approval ratings were in the black, while shares of all the companies whose CEOs had the lowest approval ratings were either in the red or flat. We're talking 8 of 8 in the black, 8 of 8 in the red or flat.
What does that tell you?
First, that we live in America, the great land of greed and capitalism. If you're stock is in the money, the CEO's a god. If your options are under water, he's a dog. And don't flame me, it's what employees had to say, not me. But for what it's worth, I don't think that's a bad thing. ... Read more
Technology executives are notorious for their out-of-proportion egos and hot-headed tempers. Michael Dell, Larry Ellison, Bill Gates, Steve Jobs-- even Andy Grove--are all members of a long list of distinguished high-tech executives who are famous for not suffering fools lightly, among other things.
But what happens when they're the fools? What happens when a high-powered executive has his head up his you-know-what and has lost all sense of objectivity? What happens when a gutsy employee speaks up? Well, in many cases he gets his head chopped off for his trouble. In shrink speak this is called transference, which in this case means unconsciously taking one's own feelings of inferiority and guilt out on another.
Given a choice, the vast majority of people would rather forgo the whole decapitation thing rather than declare that "the emperor (or should I say executive) has no clothes." Not surprisingly, this phenomenon is rampant in the technology industry. ... Read more
Last week, my wife's Dell Inspiron decided to stop printing to our wireless HP all-in-one. It was apparently a problem with the spooler, whatever that is. At that point, I had two choices: leave it alone and hope for a miracle, or fix it and perform some upgrades I'd been putting off.
Let me back up and explain something. I hate working on my wife's computer. Whatever I do inevitably screws something up, it takes way longer than I would like, and well, let's just say, my wife is impatient when it comes to technology.
It's OK for a doctor or dentist to poke and prod her, but when I poke or prod her computer, she acts as if I do it for the pure sadistic enjoyment of screwing up her peaceful existence. ... Read more
Every so often, I wonder if Silicon Valley is all it's cracked up to be. Sure, the confluence of venture capital, universities, and lawyers make it a veritable petri dish for the formation of technology companies, but there are a lot of other great places for innovation, right?
Well, if you go strictly by market capitalization, and look at the top 10 information technology companies, 6 of them are based in Silicon Valley: Cisco Systems, Google, Intel, Hewlett-Packard, Apple, and Oracle. In fact, if you map these company's headquarters, they'd all be inside a circle with a radius of just 10 miles. Amazing, when you think about it.
And these companies are far from just "headquartered" in Silicon Valley.
Google and Apple are very much centralized from a product and technology development standpoint.
Intel has research-and-development facilities in Oregon, Arizona, and Israel, but a significant amount of its R&D occurs at or near its Santa Clara, Calif., headquarters. The same is true of Cisco, though the networking giant owns several large subsidiaries--such as Scientific Atlanta--that are based elsewhere. Likewise for Oracle.
HP is somewhat more diversified, with product development for its Compaq unit in Houston, plus R&D facilities in Idaho, Oregon, and additional cities around the globe. But still, more of its R&D occurs in northern California than anywhere else.
Three of the four companies not based in Silicon Valley have research and development consolidated near their corporate headquarters: Microsoft in Redmond, Wash.; Qualcomm in San Diego; and Nokia in Finland.
IBM, on the other hand, is the most distributed company of the 10, with R&D facilities in New York, Massachusetts, Vermont, North Carolina, Texas, Minnesota, and a number of international locations, including London.
What does all this mean? Well, the data's essentially useless, unless you compare these companies to the same group, say 5 or 10 years ago. Luckily, I've got a good memory. It's not necessarily obvious from the data, but there does appear to be a trend toward more distributed R&D among large companies--if not domestically, then certainly internationally.
Although there are a number of new and growing U.S. technology hubs, none appears to be in a position to unseat Silicon Valley as the tech mecca.
Internationally speaking, China, India, Israel, Japan, and the United Kingdom each have technology development centers with tremendous growth potential. South Korea and Taiwan are nothing to sneeze at, either. Sure, they all have a way to go to match the confluence of resources and talent that Northern California offers. But the trend is there.
And while our qualitative analysis consists only of 10 companies, I do believe that it represents the industry as a whole.
In summary, as information technology penetrates further into the lives of more and more people, it stands to reason that innovation hubs will become more and more geographically distributed, if not also technically specialized.
And someday, a new technology may take root and ultimately supplant electronics as the driver of human innovation. It might be a form of biotechnology, nanotechnology, or something else entirely. In that case, all bets are off.
Updated 5/29/08 12:23 PM - Modification to paragraph on Intel R&D.
I'm not a big fan of surveys, so I don't quote them often. But a recent Consumer Reports survey about PC manufacturers listed Apple as No. 1 in tech support, with Lenovo second, Dell third, and HP dead last. I should also say that Dell came in second in desktops.
I thought the headline should be "Survey says leading PC maker HP dead last in tech support." But that's not what happened. The media hailed Apple, trashed Dell, and gave HP a pass.
Horror stories about Dell's support are all over the blogosphere. Why is that? I mean, why does the media give Dell such a hard time?
Because perception is reality. But aside from being a pithy statement, what does that really mean? ... Read more
I've got a question for you: How are you doing? Sure, of course you're fine. Here's a follow up: How do you know you're doing fine? Tougher question, huh?
What's that, you have a question for me? Why am I asking these inane questions?
Because, when people ask us how we're doing, we respond automatically. I'm fine, we're fine, everything's fine. After all, if we engaged everyone in a rant about the gory truth, nothing would ever get done.
But it doesn't stop there. We don't even engage ourselves in a dialogue about the gory truth, and for much the same reason. We're too busy "living."
The truth is that seemingly simple questions can actually be pretty loaded, so loaded that we'd sometimes rather not know the answer. We have all these sayings about leaving well enough alone. Why upset the apple cart? Why open a can of worms? Don't fix it if it isn't broken. ... Read more
After describing a particularly exciting consulting opportunity, a friend called me "lucky." That got me thinking: Is he right? Is luck a component in business success, or is it all about knowledge and experience. And if luck does play a role, how important is it? Can it be influenced, or is that taboo by definition?
To answer those questions I first did a little research. The Merriam-Webster online dictionary defines luck as "a: a force that brings good fortune or adversity, or b: the events or circumstances that operate for or against an individual."
Gee, "luck" sounds a lot like "competition" to me. ... Read more
Sometimes I'm so uninspired I can't come up with a decent blog post to save my life. When that happens, I turn to what comforts me: numbers. Yes, I know how weird that sounds. What can I say, I'm a geek.
Anyway, I just got to wondering how investors in various technology companies fared over the long haul. I was just as interested in how technology companies performed versus companies with a more traditional business model. ... Read more
Technology companies run into trouble from time to time. Today it's Yahoo, Dell , and Motorola. Tomorrow it could be Google, Cisco Systems, or Apple.
Lest we forget, it wasn't that long ago that Apple flat-lined for an entire decade before ousting Gil Amelio in favor of ex-chief Steve Jobs. Jobs restructured the company by first cutting Newton and other unprofitable products, then introducing exciting new core products like iMac, and finally branching out into consumer devices like iPod and iPhone.
But that's nothing new. It happens to most companies, sooner or later. ... Read more
How do we value technology companies? Ingenuity and invention, quality of service, brand loyalty, manufacturing muscle, operating efficiency, supply-chain management, price, great place to work. There are lots of metrics.
For those unfamiliar with the wily ways of Wall Street, the stock market has its own way of expressing what it thinks of companies. It's called market capitalization or market cap for short. ... Read more
