Category Archives: Business

Polls, statistics and lies

Running a survey and computing statistics is like walking on a ridge, with bias as the two steeply sloping sides. Conducting an objective study is rife with opportunities to skew the results. Intentionally or unintentionally, an experiment can be designed to yield the desired results. A truly objective experiment should start with a probabilistic method for selecting a sample, gather data without inducing any bias into the participants, classify and summarize the data accurately and present the data in a clear, honest and unambiguous fashion to support the decisions reached.

Literary Digest predicted a landslide victory for the republican Alf Landon in the 1936 presidential elections while the incumbent Franklin Roosevent actually won by a wide margin. During the 1948 presidential elections, polls predicted that Thomas Dewey would defeat Harry Truman. More recently, polls predicted that Barack Obama would defeat Hillary Clinton in the the New Hampshire primaries. If actual results do not match desired results, marketing machines tend to distort the facts to suit their objectives. A recent Business Week cover story discussed how manufacturers promote cholestrol lowering drugs by presenting half truths and seeming facts.

Literary Digest tallied the 2.3 million respondents from the 10 million polled and arrived at their conclusion favoring Alf Landon. Peverill Squire in his 1988 article in the Public Opinion Quarterly 52:125-133 entitled “Why the 1936 literary digest poll failed” posits a theory. First, the sample was selected based on telephone directories and automobile registration records. The sample was thus not representative of the population; the poor who backed Roosevelt could not afford telephones and automobiles. Second, the response rate was less than 25% and based on the results from a Gallup poll trying to investigate the discrepancy in results, among the non-respondents, a very high percentage favored Roosevelt.

In 1948, it was Gallup’s turn to incorrectly conclude from its poll that Dewey will defeat Truman in the presidential elections. Sampling error was to blame. Pollsters adopted quota sampling where a fixed sample size was selected from each strata of society, instead of random sampling. Secondly, pollsters got cocky and stopped polling a few weeks too soon. Finally, the polls were conducted over the telephone and the poor who didn’t have access to telephones swayed the election in Truman’s favor. Popcorn and feed polls (items on sale were printed with donkeys and elephants and buyers urged to purchase the item printed with their party affiliation) targeted the lower income strata of society and such polls correctly indicated Truman as the winner. However, these polls were not published widely and those conducted by Gallup and others had national outreach with major newspapers. In the last few weeks leading up to election day, Truman’s campaign style helped him reach out to the poorer voters, unlike Dewey’s.

ABC, CNN, CSPAN, Gallup, Reuters, USA Today, Washington Post, and Zogby polls all had Democratic candidate Sen. Barack Obama winning the 2008 New Hampshire Primary against Sen. Hillary Clinton. This was perhaps the biggest error in polling results since Chicago Tribune prematurely proclaimed Dewey as the winner in the 1948 presidential elections. Once again, sampling was inaccurate but it was also compounded by a larger margin of error due to a significant 18% “undecided” vote in the exit polls. Poorer white voters tend not to participate in surveys and they generally have an unfavorable view of black candidates. Women voters who overwhelmingly supported Clinton also outpolled male voters in the primary, which could have upset the sampling.

Ventures and Dynamic Leaders

Tom Byers, in his talk at the Entrepreneurial Thought Leader speaker series, discusses how a CEO should evolve as a startup goes through its phases. He quotes Randy Komisar in drawing an analogy between a CEO’s evolution and types of dogs. As a startup is just getting off the ground, the CEO should be like a retriever, seeking venture capital and trading equity for ideas and dollars. As the startup matures, the CEO should be like a bloodhound, sniffing a trail and setting a strategy for the company. Once the startup is established, you need a husky as a CEO, one with temperament and high-energy for the long haul.

Must-reads to prepare you for a career in business

I recently listened to a podcast from MBA Podcaster titled MBA Must Reads: Experts Share Their Top Recommendations on the Books that will Prepare You for Your Application, Business School and Your Career Beyond School. Following are the books cited in the podcast:

  1. The Structure of Scientific Revolutions by Thomas S. Kuhn
  2. Costing the Earth: The Challenge for Governments, the Opportunities for Business by Frances Cairncross
  3. The World Is Flat: A Brief History of the Twenty-first Century by Thomas L. Freidman
  4. The Seven Spiritual Laws Of Success – A Practical Guide To The Fulfillment Of Your Dreams by Deepak Chopra
  5. How to Become CEO: The Rules for Rising to the Top of Any Organization by Jeffrey J. Fox
  6. Winning by Jack Welch, Suzy Welch
  7. How to Win Friends and Influence People by Dale Carnegie
  8. The One Minute Manager by Kenneth H. Blanchard, Spencer Johnson
  9. The Brand You 50 : Or : Fifty Ways to Transform Yourself from an ‘Employee’ into a Brand That Shouts Distinction, Commitment, and Passion! by Tom Peters
  10. The Trusted Advisor, by David Maister, Charles Green, and Robert Galford
  11. The Seven Habits of Highly Effective People by Steven Covey
  12. The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell
  13. Freakonomics : A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt, Stephen J. Dubner
  14. Emotional Design: Why We Love (or Hate) Everyday Things by Donald A. Norman
  15. The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures by Frans Johansson
  16. Songbook by Nick Hornby

Is iPhone the next PC?

On March 7, 2008, Apple announced the launch of an iPhone Developer Program. Software developers now have the ability to develop, debug and distribute applications for the iPhone and iPod Touch. Kleiner Perkins, the famed Silicon Valley VC has set up a $100 million fund to invest in companies building applications for the iPhone. In addition, Apple announced an entry into the enterprise market, which could deal a huge blow to RIM’s Blackberry. Is this finally going to catalyze the long awaited convergence of mobile devices and make the iPhone as ubiquitous as the PC?

Mobile devices have been open to developers for a while – Palm, Windows Mobile and Symbian. Apple has a distinct advantage in that it is capitalizing on its incredible momentum first with the iPod and then with the iPhone. Also, Apple’s timing is impeccable; simultaneously announcing the availability of the SDK and its plans to enter the enterprise market. The buzz created in media is enormous. Secondly, Apple’s offering takes care of not only the development of third party applications but also provides a platform for its distribution. While all the other comparable platforms enable development, they fall short on offering a distribution mechanism, which is critical to drive adoption.

Finally, if I can read all my eMails, browse the web through a full-featured browser, listen to music, watch videos and take advantage of really cool third-party apps to come, all through my iPhone, I no longer have to carry any other mobile device. Which starts to beg the question, can I also make do without my laptop in most cases?

Green Apple

I just watched a trailer of an episode from PBS’s e2 series on energy, entitled “Green Apple“. David Owen, a journalist for The New Yorker contends that suburban sprawls, by design, are energy unfriendly due to the necessity of driving everywhere. He talks about New York being the greenest city, using Manhattan as an example and citing the proximity of resources and amenities that make it possible to either walk or take public transportation to your destinations, thus helping conserve on fuel usage.

Gaming the Prius

If you drive a Toyota Prius hybrid, tell us honestly how much time you spend staring at the real-time mileage indicator on the center console. I consider the display a ground breaking innovation. For the first time, drivers are getting instant feedback on how their driving habits influence fuel consumption. Who doesn’t want to play the game and score high points?

In the last two months that I’ve owned the Prius, I’ve seen my gas mileage steadily inch up to over 50 at the moment. Here are some tips that I’ve seen work favorably:

  1. Use the cruise control as much as possible, even on back roads if you feel comfortable. With the cruise control engaged, the car intelligently uses auxillary power from the electrical engine, maximizing gas mileage.
  2. Use the break assist when coming to a halt. Anticipate breaking and use the break assist feature to slow down. This helps recharge the batteries as well.
  3. Start and stop gradually. Very soon it will become apparent to you that flooring the gas pedal adversely affects mileage.

A california non-profit group, CalCars is pushing the Prius further by adding a plug-in option. This extends the gas mileage to over a 100.