A few days ago I wrote about the problems of “misaligned incentives”.   The focus of that article was on the sales compensation models of inside sales reps, and the importance of aligning the company’s objectives with the compensation plans of its salespeople.
Another example of misaligned incentives has come up in the last 2 days in a story that has been widely reported in the tech press.  An Airbnb customer used the service to rent her house for a week to a visitor, and when she returned her house was destroyed …

I have a confession to make: we own a timeshare.
Now before you berate me for having no business sense in buying a timeshare, let me say that it is with one of the best hotel brands in the world, we bought in a location that we intend to use every year (as opposed to buying as an investment, or to trade into other properties), we’ve been very happy with it and after six years have no regrets with our purchase.  …

In a world where Apple can do no wrong and Google has had some product flops, this week their roles have reversed.
Google launched its most ambitious social initiative yet with Google+. It is getting very good reviews from GigaOM, TechCrunch, Mashable and others.  Due to “insane demand“, Google had to shut down invites to manage a slower rollout.   (Even further proof that the world is upside: one of the original Apple Macintosh designers was the lead designer for Google+).
Beyond the smart design though was also a smart strategy.  First, Google …

I must admin that I’ve been baffled by Groupon’s success.  I’ve been a member for probably 6 months and only bought one Groupon – a discount to a dry cleaner that i already use, which I’m sure they were thrilled about.
Basically Groupon aggregates local email addresses – they are an intermediary.  In a world where every industry is constantly being disintermediated, why are we heaping praise on a new intermediary?
I could care less about the witty writing – I never read it.  I guess it makes for some …

There’s something big about LinkedIn’s recent news that no one is talking about yet.
According to a report, LinkedIn is expected to announce their “Apply with LinkedIn” button (via GigaOM).  It enables companies to place a button on their websites and online job postings so that applicants can apply by submitting just their LinkedIn profile, instead of needing to fill out a separate application.  This is a great idea, and I’d be shocked if there wasn’t significant adoption of this feature, especially among professional services businesses.   In one action, LinkedIn (1) …

Consumers are frustrated.  As innovations lead us to newer, better, faster, more powerful products and services, we keep finding a disparity between our purchase of those products and services and the rights we have to them.
Google and Amazon both recently announced online music “lockers” that allow consumers to upload music – that they have legally purchased – for backup purposes and to stream via a web browser or mobile app.   But the music labels think they should be paid to allow this type of service.   As a result, …

There I was, 2 weeks ago sitting in an auditorium on a Sunday attending TEDxCMU.   It was an inspiring and emotional day with 12 fantastic talks from local and national presenters.
One of the talks was by Luis von Ahn, a CMU professor.  It only took me a minute to realize that I was in the presence of an amazing innovator, and that I had the privilege of being one of the first people to hear about his latest project.
All the confirmation I needed that what I witnessed was important came …

I think the best businesses are ones where the business model is so ingrained into the product or service that you can’t think about the business and business model separately.  That is not always the case – most businesses are built first and they try to answer their business model question later.
My broad definition of a business model is “How do you separate customers from their money”?  Business models aren’t only about your pricing model; it’s about the entire process, from how a customer finds out about you, to how …

The biggest news in the world of start-ups in the last 24 hours is the announcement that investor Yuri Milner of DST is partnering with famed angel investor Ron Conway on a new innovative start-up investment vehicle called Start Fund.  The Start Fund is offering $150,000 loans to every one of the 43 start-ups in the Y Combinator class.
Some background here.  Yuri Milner runs the Russian investment firm DST, which has already been a force of disruption in the venture capital world by making very large investments in Facebook, Zynga, …

With this last post of 2010, I wanted to write about some of my observations of retailers and products during this holiday shopping month.
Charity giving at the register. When I was making a $50 purchase at the local Pottery Barn, as I was paying the clerk asked if I’d like to donate $1 to St. Jude’s Children’s Hospital.  I think this is a terrific way to raise money (and I said yes).  First, I’ve already taken out my credit card, so that barrier is gone.  Second, they didn’t ask me …