Episode #468: Centers of Progress — Interview with Chelsea Follett

This week Ron and Ed welcomed Chelsea Follett to talk about her book, Centers of Progress: 40 Cities That Changed the World. From the book: "Where does progress happen? The story of civilization is the story of the city. It is cities that have created and defined the modern world by acting as the sites of pivotal advances in culture, politics, science, technology, and more. There is no question that certain places, at certain times in history, have contributed disproportionately toward making the world a better place. This book tells the story of 40 of those places." In Centers of Progress: 40 Cities That Changed the World, Chelsea Follett examines a diverse group of cities, ranging from ancient Athens to Song-era Hangzhou.

Use these show notes to follow along with the audio:

Segment one:

• Chelsea spends a lot of time thinking about human progress (get it?) and the conditions that drive it. This inspired her to write a book called “Centers of Progress: 40 Cities That Changed the World”. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652 

• Chelsea started writing this book during the pandemic and this (the pandemic) caused people to question cities and their role in the future. It was HARD the trim the list down to 40 cities for her book. 

• Most of the cities in Chelsea’s book were selected by reverse engineering things like a stable food supply and sanitation (for example). The origin points became some of the cities featured in her book.

• Urban centers are where we have seen new innovations and world changing innovations. Chelsea’s book - “Centers of Progress: 40 Cities That Changed the World” - goes through the examples

Segment two:

• Relative peace, freedom, and multitudes of people are some of the key attributes associated with the Centers of Progress identified in Chelsea’s book. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652  

• Sure, sure…human accomplishment can happen during times of war and instability. Chelsea’s book looks at the conditions that foster creativity and progress to help cultivate innovation. Peace and stability.

• “Conditions for progress can unravel so quickly. One of the most recent examples is Hong Kong.” —Chelsea Follett

• Many people assume the humanities are the result of leisure time, entrepreneurs, inventions. Writing evolved gradually due to…accountants and their need to document finances. Apt for our audience :)  

Segment three:

• “Economic development […] then funds all of the other forms of progress. Scientific advancements, inventions, great artworks.” —Chelsea Follett

• So much of the great music that we are familiar with TO THIS DAY all occurred in Venice. That’s where artists were well paid so it was lucrative for them. More on great cities here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652

• How did Thomas Edison influence Hollywood? At the time he was a very litigious man so the only way creative freedom in film could happen would be to go all the way to the West Coast…where Hollywood was created.

Segment four:

• Why is Wellington, New Zealand in Chelsea’s book about 40 cities that changed the world? They represent significant moral progress in the area of suffrage throughout the city’s history.

• China was superior in many aspects during the 12th century through the 16th century. Conditions for prosperity are fragile and not being at the front of the Industrial Revolution for China is a great example.

• San Francisco is a “city of extremes” and is featured in Chelsea’s book, “Centers of Progress: 40 Cities That Changed the World”. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652  

• A big THANK YOU to Chelsea Follett for joining us today to talk about her book, “Centers of Progress: 40 Cities That Changed the World”. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #467: Subscription Economy Update — 2023 Edition

We can't believe it has been since February of 2022 that we have done a subscription-economy update. (Check it out at http://thesoulofenterprise.com/378.) We are glad to be sneaking this one in just under the wire for 2023. Ron and Ed share their latest thinking on the progress (or regression) of subscription pricing both in the professions and in the broader market including both business and consumer. As usual they come "loaded for bear." It will be a challenge to listen to this one at double speed.

Use these show notes to follow along with the audio:

Segment one:

• Other subscription updates that were full shows include show 378 in February of 2022. Show audio and notes here: https://www.thesoulofenterprise.com/378 

• For one and done services, it’s really hard to turn into a subscription. What about a real estate agent, for example? We don’t have an answer yet but maybe some businesses do not fit the subscription model.

• Divorce attorneys and funeral parlors. Those are two great examples Ron and Ed give that are……ahem…..challeging from a subscription perspective.

• Ed and Ron had a fun time with this article today with a hat tip to Hector Garcia. Let’s just say there are some holes in the article :) https://www.axios.com/2023/11/24/membership-subscription-economy-business-model 

Segment two:

• From Andrew on LinkedIn (via Ron): He runs a sonic branding agency (the sounds we associate with brands) with weekly and bi-annual orders with budges in hundreds to the tens of thousands. How can this be a subscription?

• Related to Andrew’s question, Tim Williams has a great quote here because this is more about positioning than it is pricing: “Be something to someone.”

• Here’s a great definition of strategy from Playing to Win by AG Laffley and Roger Martin: “Strategy is an integrative set of choices that positions you on a playing field of your choice so that you can flourish.”

• “Diversification is what you do when you don’t know what to do. “ —Tim Williams

Segment three:

• The subscription release of the year for 2023: CNN blocks all programming of CNN so that you don’t see it again for $15 per month https://babylonbee.com/news/cnn-introduces-premium-subscription-service-that-blocks-all-cnn-programming-from-view 

• Gaming subscriptions are an enormous market now. Total gaming subscription revenue is currently estimated at $16 billion with game subscription revenues to rise to $22 billion a year by 2027 https://www.xfire.com/game-subscription-revenues-to-rise-to-22-billion-a-year-by-2027 

• People Are Sick and Tired of All Their Subscriptions: https://www.wsj.com/articles/people-are-sick-and-tired-of-all-their-subscriptions-cbee7e03 

• “Subscription moves things from CapEX to OpEX. It makes things more predictable and usually saves cash flow.” —Ron Baker

Segment four:

• Great news from Ron! You are invited to attend the Successful Bookkeeping virtual summit where Ron will be speaking on the subscription business model. Register here: https://www.thesuccessfulbookkeeper.com/virtual-summit-2023 

• Wait….what??? Did Ron just say you don’t need 3 pricing options anymore? You’ll need to listen to segment 4 of the show today to listen to him tease out this idea.

• From Ed today: Why has this option not appeared since the advent of cloud accounting? “You can use our system as long as you allow us to use your data to train our systems.”

• Why do people gravitate to flat pricing? Three reasons: 1) We overestimate our usage. 2) The feeling of being nickeled and dimed. 3) The insurance effect.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode Reprise — Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays

[Editor’s Note: Some things are just too good not to share again. While our most ardent listeners are familiar with Episode #22, Scroogenomics, many may not be familiar with this specific show. This Friday is Black Friday in the United States which means it’s time - once again - to talk about why you shouldn’t buy presents. Bah, humbug!!!]

On Black Friday, and right before Cyber Monday—the biggest shopping days of the year—Ed and Ron thought it would be fun to discuss the interesting, funny, and thought-provoking book by Joel Waldfogel: Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays.

The author makes the case that the deadweight loss to the economy from gift giving, in 2007, totaled $12 billion, out of approximately $66.5 Billion spent (about 12%). Citizens Against Government Waste would classify Christmas as a wasteful government program.

Gift giving severs link between buying decision and item’s value to its user—the transaction actually destroys value. To add insult to injury, we are obliged to pretend to be grateful!

His complaint is not the level of spending or the consumption, but the waste.

We discussed the four ways you can spend money in the economy:

Former Congressman Dick Armey pointed out how difficult spending is in Category II (Gift), let alone Category IV (Government):

Every year, I worry and fret select the right birthday gift for my wife, Susan. Every year, try as I might, I manage to choose the wrong thing. If I can’t figure the needs and desires of the one person who is closest to me in the world and who I deeply love and care for, how can we expect the government to do a better job?

Three groups spend other people’s money: children, thieves, politicians. All three need parental supervision.

Hierarchy of value of gift giving

• Aunts & uncles & grandparents = 75%

• Parents = 97%

• Friends =91%

• Siblings =99%

• Significant others = 102%

Further, we spend approximately 2.8 billion hours shopping in December. To put that number in context, the old USSR—before it imploded—spent 35 billion hours annually standing in line for everyday products and services.

Infographic from Deloitte’s 2018 annual holiday survey

Economist Ian Ayres said this about Waldfogel’s book:

Joel Waldfogel is one of the smartest and funniest economists on the planet. I think of him every time I start to unwrap a present. Buy Scroogenomics for your friends and family. It makes the perfect Christmas gift.

Episode #466: Interview with Steve Goreham — The Green Breakdown

Ron and Ed were delighted to welcome Steve Goreham to The Soul of Enterprise. He is the author of four books on climatism and green energy, and we discussed his most recent book: Green Breakdown: The Coming Renewable Energy Failure, published this year. We dove into the physics and engineering issues involved in the transition to renewable energy, and why it won’t be as easy as a lot people claim. This was an enlightening and informative discussion.

Use these show notes to follow along with the audio:

Segment one:

• Steve has an engineering background which likely helps with how he methodically approaches his new book, Green Breakdown https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• Ed referenced this today because Steve alludes to it in his book. Did you know about the great horse manure crisis of 1894? More here: https://en.wikipedia.org/wiki/Great_horse_manure_crisis_of_1894 

• “The wealthy nations of the world are in the midst of an energy transition and trying to force NET ZERO by 2050.” [..] “This is beyond a reach out effort. It’s more like a wish and a prayer.” —Steve Goreham

• Today I learned, the states that have the lowest electricity rates have made significant investments in hydroelectric power.

Segment two:

• Wind, solar, and the energy mountain is a great slide provided by Steve for the show today

• “We have the wealthy nations of the world trying to force the undeveloped nations not to use coal, oil, and gas.” —Steve Goreham

• On carbon capture and storage (CCS): “I attribute [CCS] to unicorn arranging. It’s a completely useless exercise.” —Steve Goreham

• Steve touched on the idea that $5 trillion dollars has been spend on renewable energy from 2004-2021. Here is a slide with key dates.

Sement three:

• Should you ditch your gas stove, oven, water heater, or fireplace? “The recent articles around these topics weren’t written by medical professionals. They were written by climate folks.” —Steve Goreham

• Steve asks audiences this question when speaking: “What fuel source is most responsible for improving air quality across the world? Natural gas and propane.” Here is a quick source https://www.eia.gov/energyexplained/natural-gas/natural-gas-and-the-environment.php

• “We’ve really cleaned up our air in the United States. If you look at EPA data, all of our major air pollutants are down about 80%.” —Steve Goreham

• “Nuclear is very non-polluting from an air quality point of view. Many environmental groups for years and years opposed nuclear power. They’re stepping back from that now a little bit.” —Steve Goreham

Segment four:

• From Steve: Electric vehicles are penetrating world markets. Last year about 14% of new light vehicles sold in the world were electric. But dealer inventories are up. EV pickup trucks are not selling well. Ford loses on every vehicle sold. 

• The problem with electric vehicles is that governments are trying to force a change. Steve rattled off a list of about 10 states that have a law similar to California. 

• After electric vehicles, Steve shifted his attention to ships on our show today. And aviation. There are similar “green” regulations in both industries that he addresses in his book, Green Breakdown https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• A big THANK YOU to Steve Goreham for joining us today. We highly recommend his newest book, Green Breakdown: The Coming Renewable Energy Failure https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• We have GREAT NEWS! Ron will be presenting at The Successful Bookkeeper Summit on December 7th - 8th. Early bird registration is available now. https://www.thesuccessfulbookkeeper.com/virtual-summit-2023  

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Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #465: Goldratt's Rules of Flow

This week Ron and Ed explored Goldratt's Rules of Flow by Efrat Goldratt-Ashlag, daughter of Eliyahu M. Goldratt whose seminal work, The Goal has been read by millions. Interestingly enough, this topic was suggested by Ron who usually falls asleep when Ed gets rolling on project management topic, so you know this episode is one to remember.

Use these show notes to follow along with the audio:

Segment one:

• This is the quote Ron and Ed started the show with. You can probably tell they had fun with it. “The common belief is that if every machine is fully utilized the entire operation will be efficient.”

• “I have been advocating for years that people who do software implementations should sell the project plan up front as a separate engagement.” —Ed Kless

• “External customers are the ones footing the bill for everything. Not internal customers.” —Ron Baker

Segment two:

• When you think about the work you can do, remember this. The more projects in the mix, the longer the lead time, which means we need to control our width. 

• “Multitasking is not true. You don’t multitask. You deal with multiple tasks in a serial fashion. You can’t possibly do more than one thing at the same time.” —Ed Kless

• One of the rules from the Rules of Flow: “If you don’t want to get stuck, verify full kit before you get going.”

• How many of you does this resonate with? From Rules of Flow: “We attempt too many projects at the same time and we pay too little attention to each project.”

Segment three:

• “If you can increase the amount of time you are spending on a particular project, you are far better off.” —Ed Kless

• Related to the Rules of Flow and project management… “Customer: I don’t have time to test. Ed Kless: Well, do you have time to fix it when it’s not working?” 

• “You always fix a problem twice. Once for the time it happens and then by thinking about what you are going to do to stop the problem from happening in the future.” —Ed Kless

• “Managers and leaders shouldn’t be scheduling what people work on when. You should give them a due date, estimated effort, and let the individual decide when they are going to complete that task.” —Ed Kless

• Ron and Ed mentioned Parkinson’s law on the show today. More here: https://en.wikipedia.org/wiki/Parkinson%27s_law

Segment four:

• Buffer time, in project management, is the extra time added into a time estimate to keep a project on track. https://www.velaction.com/buffer-time/

• The Fever Chart explained in four minutes: https://www.marris-consulting.com/en/videos/critical-chain-project-management/the-fever-chart-explained-in-4-minutes 

• “Queuing theory was mind numbing” —Ron Baker, more information here: https://en.wikipedia.org/wiki/Queueing_theory 

• “It’s all about how you arrange the work.” —the late, great Dr. Reginald Lee

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #464: On Mark Andreessen's The Techo-Optimist Manifesto - Part 2

This week Ron and Ed continued their conversation on Mark Andreessen's The Techo-Optimist Manifesto. In addition to finishing their analysis, they talked through some responses that others have had to the document. In addition, Ron and Ed were joined in the conversation by Greg Tirico of TSOE Bonus episode fame and knower-of-many-techno-things himself.

[Editor’s note: Part 1 of Ron and Ed’s discussion is episode number 462 at this link]

This show’s guest was Greg Tirico, the dude who normally takes notes for us and sits quietly in the background of each show. Since no one was sitting in the corner taking notes, we give you the best AI can provide.

AI Generated Show Notes:

• Tech optimism and the future of enterprise.
  Ed Kless and Ron Baker discuss Marc Andreessen's techno-optimist manifesto with guest Greg Tirico, who has knowledge of technical things and has previously appeared on the show. Greg Tirico shares insights on Andreessen's ideas and participates in a bonus episode for Patreon members.

• Techno optimism and fear of failure in the accounting industry.
  Greg Tirico and Ron Baker discuss Mary Meeker's former Internet Trends report and how it's no longer being produced. Joe Woodard and Heather Satterlee host a podcast on techno optimism, including an episode on the fear of failure.

• The meaning of life and materialism in techno philosophy.
  Ron Baker questions the distinction between techno optimism as a material philosophy vs. a management philosophy. Ron Baker and Ed Kless discuss how technology opens up possibilities for human existence, with Ron acknowledging the line between materialism and spirituality.

• The future of technology and society.
  Greg Tirico and Ed Kless share their excitement about the potential of the internet and its impact on society. Ron Friedman is critical of the mass demoralization of society and the undervaluing of existential risks, sustainability, and ethics.

• Enemies, ideas, and consequences.
  Ron Baker and Ed Kless discuss the dangers of "zombie ideas" and the importance of holding experts accountable for their actions. Ron Baker and others criticize Andreessen's blanket statements on trust and safety without sufficient explanation.

• Technology, ethics, and the future.
  Ed Kless and Ron Baker discuss the precautionary principle and its connection to civilian nuclear power. Asimov's Foundation Series features miniaturized civilian nuclear power.

• Techno-optimism and its limitations.
  Greg Tirico and Ron Baker discuss Marc Andreessen's techno-optimist manifesto, focusing on the section on the enemy and the idea that bad ideas are more harmful than bad people.
  They also discuss how the population has voluntarily adopted monitoring devices like iPhones, which could be seen as a form of 1984-style thought control.

• Techno-optimism and the future of humanity.
  Ron Baker and Ed Kless discuss the importance of being optimistic about the future and fighting for a better world, citing David Deutsch's idea that we have a duty to be optimistic because the future is open and not predetermined. Alex Epstein is mentioned as someone who is talking about the importance of developing countries and reducing poverty, and Ron Baker finds his message compelling. Ron Baker and Ed Kless discuss techno optimism and the importance of builders in society, citing various influential thinkers.

• Influential authors and the challenges of creating a comprehensive list.
  Greg Tirico and Ron Baker discuss the difficulty of creating a comprehensive list of well-read individuals, as it inevitably excludes others.

• Twitter accounts and their humor.
  Based Bev Jesus is a hilarious Twitter account poking fun at cutting-edge technology, including large language models from Facebook. Ed Kless and Ron Baker discuss sponsors, ratings, and shoutouts on their podcast.

• A Wired article criticizing Marc Andreessen's techno optimist manifesto.
  Steven Levy, well-known tech author, critiques Marc Andreessen's manifesto in Wired article.
  Steven Levy, technology journalist and author, has been involved with Wired magazine since its inception and has written several books on tech companies, including Google and Facebook.
  Greg Tirico expresses disappointment with Steven Levy's attacking tone in an article about Andreessen Horowitz.

• Late stage capitalism and wealth inequality.
  Ron Baker and Ed Kless discuss the use of the term "late stage capitalism" in a recent article, with Baker finding it grating and Kless pointing out its repetition. The speakers debate the effectiveness of addressing income inequality through wealth creation, with Baker arguing that it's a separate issue and Kless suggesting that it's intertwined. Greg Tirico expresses techno-optimism, while Ed Kless and Ron Baker criticize Andreessen's essay for lacking solutions to wealth creation and distribution issues. Baker and Kless argue that Andreessen's manifesto is overly critical and cherry-picks information, while Tirico's response is more constructive and focused on providing solutions. Ron Baker and Ed Kless analyze Marc Andreessen's article, criticizing his views on healthcare and entrepreneurship. They argue that Andreessen's success may be due to jealousy and envy from those who are less wealthy and successful.

• Techno optimist manifesto with rebuttals.
  Greg Tirico and Ron Baker discuss the techno optimist manifesto with a few rebuttals from listeners. Greg Tirico highlights Marc Andreessen's effort to elevate the conversation on technology and its impact. Critics dismiss Andreessen's manifesto as a "word salad" with no substance.

• AI regulation and its potential impact.
  Ed Kless and Ron Baker discuss the potential dangers of artificial intelligence and the importance of responsible policymaking. Biden's executive order on AI is inspired by Tom Cruise's movie "Mission Impossible," with a focus on government standards and monitoring.
  Ed Kless and Ron Baker are skeptical of fears about AI, with Kless calling it "fear mongering" and Baker saying there's no evidence it contradicts human flourishing and progress.
  Greg Tirico notes the potential for AI regulation to harm the US and lead to a "slippery slope" of regulation, while Adam Firor expresses concern that the EO could lead to a backdoor regulatory regime. Optimists face backlash for their positive views, while pessimists are more likely to be recognized and rewarded.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #463: LIVE from the Creative Business Models for Accountants Conference

This week Ron and Ed traveled to Miami to attend Hector Garcia's Creative Business Models for Accountants Conference where they shared their thoughts about Day 1 of the conference live with the audience. Then they took questions from the attendees in classic "Ask Us Anything" style.

This show was LIVE and featured a series of great questions from the audience. Here is the AI generated overview but you definitely want to listen to the show to capture the audience excitement.

• Business model innovation at Creative Business Model Counties

• Consulting and questioning techniques in business

• The importance of asking "what matters" questions in innovation

• How to handle objections and questions from clients.

• Framing questions for a historical document.

• Creativity and comfort for accountants at a conference.

• Business models, branding, and AI in the professional services industry.

• Retraining the brain to think in questions, not solutions

• The importance of asking the right questions in business

• Asking better questions for personal growth and success.

• Creative business models for accountants with Q&A.

• Moving away from solution-focused thinking in sales

• Providing valuable insights through active listening and pivoting

• The accounting profession's talent crisis and outdated business model

• The future of accounting and billing models

• Making accounting a cool profession

• Using humor to revitalize the accounting profession

• Subscription-based business models and potential obstacles

• Pricing strategy and mindset for subscription-based businesses

• Business models and customer lifetime value

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #462: The Techno-Optimist Manifesto by Marc Andreessen

Ed and Ron explored Marc Andresseen's "The Techno-Optimist Manifesto." It's a thought-provoking piece that we largely agree with. You can find the Manifesto at: https://a16z.com/the-techno-optimist-manifesto/

Use these show notes to follow along with audio…

Segment one:

• Take the economics of our show over the last 9.5 hours and boil it down into one thing. What do you get? The Techno-Optimist Manifesto at this link: https://a16z.com/the-techno-optimist-manifesto/ 

• The Techno-Optimist Manifesto reminds Ron of Virginia Postrel and her book, “The FUTURE AND ITS ENEMIES” https://www.amazon.com/FUTURE-ITS-ENEMIES-Creativity-Enterprise/dp/0684862697 

• When we talk about the word conservative, we mean different things within the United States. Some conservatives today want to conserve the 1950s. True to themselves, others want to conserve the Declaration of Independence and it’s codification in the Constitution

• “Economic growth is not a cure-all, but lack of growth is a kill-all.” —Paul Collier

Segment two:

• In the “Markets” section of the Techno-Optimist Manifesto, Andreesen directly addresses transaction costs and the ability of the market to reduce them. This is AirBNB. This is Uber. This is anything that reduces transaction costs.

• Hayek’s classic paper, "The Use of Knowledge in Society" was referenced by Ron and Ed today. Link is here: https://www.econlib.org/library/Essays/hykKnw.html 

• “The law lags culture. The law emerges from the culture. It’s a lot easier to trade with one another than it is to just take it from one another.” —Ed Kless on today’s show

• In summary, we have 300 years of history to prove that technology drives wages up NOT down. More in the “Markets” section of the Techno-Optimist Manifesto https://a16z.com/the-techno-optimist-manifesto/ 

Segment three:

• Ed dropping geographic knowledge today, “Jamaica and Singapore have roughly the same population and are roughly the same longitudinally.”

• “Maybe calling [technology] a tool is too utilitarian? At the end of the day, it’s a hammer, it’s a wrench.” —Ron Baker

• One of the best lines from the Techno-Optimist Manifesto: “We believe Artificial Intelligence is our alchemy, our Philosopher’s Stone – we are literally making sand think.”https://a16z.com/the-techno-optimist-manifesto 

• The most PROVOCATIVE line in the entire Techno-Optimist Manifesto: “Deaths that were preventable by the AI that was prevented from existing is a form of murder.” https://a16z.com/the-techno-optimist-manifesto/ 

• Did you know that President Nixon called for the construction of 1,000 nuclear power plants by the year 2000?

Segment four:

• Thomas Sowell argues that the constrained vision relies heavily on the belief that human nature is essentially unchanging. More here:  https://en.wikipedia.org/wiki/A_Conflict_of_Visions#:~:text=Sowell%20argues%20that%20the%20constrained,law%20and%20experience%20of%20tradition 

• “Science is the belief in the ignorance of experts.” —Richard Feynman

• Ron and Ed BARELY had enough time during the show today to go through half of the Techno-Optimist Manifesto. If you have strong beliefs, loosely held then this piece is WELL worth your time. https://a16z.com/the-techno-optimist-manifesto/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #461: Interview with Hitendra Patil - Rise of The Aiccountants

Ron and Ed welcomed Hitendra Patil, President of the Global Finance and Accounting Outsourcing Services of Datamatics Business Solutions, Inc. and author of Rise of The Aiccountants: The What, Why, and How of Artificial Intelligence for Accountants. AI is way more than an amusement gimmick. At its core, AI is a powerful tool that can make accounting firm operations, analytics, decision-making, and client services more efficient, impactful, and insightful resulting in clients getting more delighted and, importantly, firm staff more productive, engaged, and happier. Unfortunately, other than starting to use publicly available AI tools, firm leaders who want to professionally leverage artificial intelligence often don’t know where to start. AI journey can feel overwhelming—as it requires firms to analyze existing processes, make new choices for software solutions, decide the priorities for applying AI automation and prepare every part of the firm for the transition.

About Hitendra Patil

Hitendra Patil is the author of two critically acclaimed books bought by accountants from 14 countries across five continents. Hitendra is one of the Top 100 Most Influential People in Accounting in the United States, as recognized by Accounting Today, which is the #1 professional trade journal in the US accounting and finance profession. He has also been among the Top 10 Accounting Influencers to Follow on Social Media and the Top 100 Accounting Social Media Leaderboard. He is a regularly published author in many of the leading publications in the accounting profession in the United States. Hitendra provides research-backed, contemporary insights into the accounting profession about practice growth, entrepreneurship in accounting, client accounting services, and emerging technologies, such as artificial intelligence, machine learning, blockchain, and cybersecurity. Hitendra has a keen interest in human behavior science, neuroscience, psychology - and writing. All this culminates in books, articles, blog posts, podcasts, webinars, and content that resonates deeply with the audience to inspire and influence people to take actions that benefit them.

Use these show notes to follow along with audio…

Segment one:

• “I’m not an AI deep fake. This is the real Hitendra.” That’s how Hitendra started the show today which is EXACTLY what a deep fake Hitendra would say.

• What is the biggest challenge facing the accounting profession? Separating the symptoms from the core of accounting. In a good way, we are going towards the core purpose of accounting. To help people improve their business and perform better.

• “If you look at accounting as a profession it has fewer number of celebrities compared to outside the profession. Excluding Ron Baker, of course. […] We need those celebrities to pull people into the profession.” —Hitendra Patil

• Client Accounting Services. Heard the phrase? Hitendra wrote the book, Client Accounting Services: The Definitive Success Guide https://cpatrendlines.com/shop/hp21cas/ 

Segment two:

• Hitendra holds the role of President of the Global Finance and Accounting Outsourcing Services of Datamatics Business Solutions and can be found at https://datamaticscpa.com/accounting-bookkeeping-outsourcing-for-usa-cpas/ 

• In January of 2023, Hitendra published a new book “Rise of The AiCCOUNTANTS”. More info at this link: https://www.amazon.com/Rise-AiCCOUNTANTSTM-Accountants-Artificial-Intelligence/dp/B0BTKSP6M8 

• Can we get to the point of significantly reducing the audit with artificial intelligence? Audit is facing an extreme talent crunch so it certainly is a candidate. You also handle massive amounts of data in Audit and AI is great for that.

• What about “wisdom about the situation” when it comes to applying AI to solve problems? AI does not have that context and probably never will. “There is a world that exists outside of the data.” —Hitendra

Segment three:

• Hitendra refers to “the engagement ring” as pulling in data and analyzing the past, present, and future. It’s a clever way to think about how to help your clients. 

• If you have 800 CAS customers, how can you work on the future? There’s just not enough time. Doesn’t CAS require fewer customers? “For those who really do CAS, […] the number will surely come down.” —Hitendra Patil

• If you were to launch a firm today, what would you do? “Make sure I can survive for 1,000 days with saved money. Otherwise, anything that walks in the door is a client.” —Hitendra Patil

• Do you see CAS firms adopting the subscription model? “OH YES.” —Hitendra Patil

Segment four:

• Can you be both CAS and CAAS at the same time? “I don’t think CAAS can exist with CAS.” —Hitendra Patil

• What’s your production function around doing research. “I start with some LinkedIn polls. […] Then I go through proper channels with massive amounts of subscribers. Then I ask what will be useful and actionable for the market from the research.”

• A big THANK YOU to Hitendra Patil for joining us today to talk about AI and accountants. Check out his book, Rise of The AiCCOUNTANTS, at this link: https://www.amazon.com/Rise-AiCCOUNTANTSTM-Accountants-Artificial-Intelligence/dp/B0BTKSP6M8 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #460: One Thing! - Part Three

Ron and Ed once again share entries from their "One Thing" journals, so this episode is a bit random, but contains nugget after nugget on curated wisdom for the reading and listening habits of the hosts.

Use these show notes to follow along with audio…

Segment One:

• Ron: Writing a book is more risky than having a child. You can always disown a child.

• Ed: “The juice is not worth the squeeze.” Not sure I like this metaphor.

• Ron: What’s your unpopular but good idea or cause? (Asked when Peter Thiel interviews for nonprofits)

• Ron: Also from Peter Thiel: “Tell me something you believe that most people don’t”

• Ed: “The time for debate is over!” is almost always code for, “Shut up and do what I say.”

• Ron: Jonah Goldberg — “Libertarians are like the Huns. You want them on your side, just not in charge.”

• Ed: “I can’t help but feel like you’re trying to intimidate me into pretending to agree with you." One of the thoughts that economist Bryan Caplan keeps to himself. 

• Ron: It doesn’t take a dead man to build a coffin (mechanic doesn’t need to drive BMW)

Segment Two:

• Ed: In 100 years, what will I be wrong about?

• Ron: Liberty is the absence of oppression. Freedom is the act of commitment: a choice. Peter Block

• Ed: ‘We are free to choose, we are not free to choose not to choose.’ - Peter Kostenbaum

• Ron: The problem with the gene pool is there’s no lifeguard, Steven Wright

• Ed: One of my favorite political fables concerns Dwight D. Eisenhower and his tenure as president of Columbia University. The campus was undergoing an expansion, and Ike was presented with two very different plans for laying out new sidewalks. The architects were irreconcilable, each insisting that his plan was the only way to go and that the other guy had it all wrong. Ike, sensible fellow that he was, had grass planted instead, telling the architects to wait a year and see where the students trod paths in the turf, and then to put the sidewalks there.  - Kevin Williamson

• Ron: If we evolved from apes, why do apes still exist?

• Ed: “If the slave eats the food provided by the master, does that mean the slave consents to slavery?” - Mike Munger response to the "Muh roads" argument.

Segment Three:

• Ron: An American is an Englishman left Alone. Alexis De Toqueville

• Ed: Principle of “non worst-ness.” Not hiring someone to clean your house because you think it is demeaning to them only make the have to take on another customer who will likely be demeaning.

• Ron: Argue with conviction, listen as if you were wrong

• Ed: What have I said “Yes” to that I no longer am truly committed?

• Ron: I would rather have questions that can’t be answered than answers that can’t be questioned. Richard Feynman

• Ron: JFK was asked what he was most worried him? 30-40 nations with nuclear weapons. We have 9 with America’s leadership

• Ed: A man tries to park his car in the Congressional lot. Security comes over and explains that he should not park there because Congress is in session. The guy replies, “It’s okay, I locked the doors.”

• Ron: Eric Idle: wanted biography title, “Say no more,” but that’s for his Tombstone

Segment Four:

• Ed: It is an established fact of social science that any bad idea can work for a time in Sweden.

• Ron: GK Chesterton: Gratitude is happiness doubled by wonder.

• Ed: The system will reveal true purpose in spite of the stated vision and mission statements or in the absence thereof.

• Ron: St. Thomas Aquinas: Envy is the only one of the seven deadly sins that isn’t even fun

• Ron: All models are wrong, some are useful

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #459: The Subscription Attorney: Interview with Mathew Kerbis

This week Ron and Ed welcomed Mathew Kerbis, aka The Subscription Attorney to talk about, you guessed it, subscription-based lawyering. His firm, Subscription Attorney LLC was founded in 2022 and is a modern law firm offering legal advice starting at $19.99/month, to help provide affordable access to legal advice for small business owners, freelancers, and everyday people. As usual the conversation with be mind-bending.

About Mathew Kerbis

Matt founded Subscription Attorney LLC, a modern law firm offering legal advice starting at $19.99/month, to help provide affordable access to legal advice for small business owners, freelancers, and everyday people. His legal services include general legal advice, contracts, real estate, simple estate plans, demand letters, and negotiating disputes to avoid court. Learn more at https://subscriptionattorney.com. He launched the podcast Law Subscribed to help the rest of the legal profession make the same choice.

Use these show notes to follow along with audio…

Segment one:

• Why did Mathew choose the profession of law? In college he was told, “You study logic, you do well on the LSAT and you can go to law school,” Sounded good enough to him :) 

• Fast forward to today and now Mathew is the founder of Subscription Attorney, LLC at https://subscriptionattorney.com/

• Mathew has the same disdain for the billable hour as we do. Ron was sure to call this out during the first segment and Mathew was quick to give background on what brought him to this conclusion.

Segment two:

• Mathew pivoted to the founder of Subscription Attorney, LLC while building a book of transactional business in the background. His story should sound familiar to many. It took grit and lots of networking.

• The pricing model for Subscription Attorney, LLC starts at $19.99 per month which includes access to Mathew, his flat fee services, and his growing knowledge base.

• Cost CERTAINTY is something that makes Mathew’s clients very happy. The price is clear and there is no hourly rate. More here: https://subscriptionattorney.com 

• How does Mathew decide what he covers and what he doesn’t cover? His engagement agreement is publicly available on his website at this link: https://subscriptionattorney.com/#engagement 

• Mathew has a great Zoom background that includes a QR code. Check it out here (and think about doing it yourself?

Segment three:

• As your attorney, I highly recommend you listen to Mathew’s podcast where he talks about people who are innovating in the law space. More info here: https://linktr.ee/lawsubscribed @lawsubscribed

• What is the number one thing Mathew sees with his clients as a result of moving away from the billable hour and towards subscription? “THEY ARE NOT AFRAID TO CALL ME” — nailed it!

• “How much money you make is not based on your time anymore.” —Mathew Kerbis when talking about moving away from the billable hour.

• Making the cancel button PROMINENT and EASY to find means the customer/member is even more comfortable with your service.

Segment four:

• General practitioners might get to the point one day where they can subscribe to specialists on behalf of their customers/members. Mathew calls this “subscription arbitrage” and it’s a brilliant term.

• “This can’t be done” is something Mathew is not hearing much anymore. Instead, he is hearing “This is genius. Why didn’t I think of that?” more and more often…

• Shift Supervisor at Starbucks is something you will see on Mathew’s LinkedIn profile. The story behind his experience there and how he was pulled it forward is great (check out segment four of the show today)

• A big THANK YOU to Mathew Kerbis for joining us today. Check out the Subscription Attorney at this link https://subscriptionattorney.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #458: Disneyland on the Mountain — Kathryn Mayer and Greg Glasgow

Ed and Ron could not wait to interview Kathryn Mayer and Greg Glasgow and discuss their brand new book, Disneyland on the Mountain, released September 13, 2023. If you are a Disney fan, you do not want to miss this episode!

About Kathryn Mayer

Kathryn Mayer is a Denver-based writer and journalist whose work has appeared in numerous publications including Health, Observer, Insider, and PopSugar. She primarily writes about business, covering workplace health and benefits strategies, and she has appeared on radio, TV, and podcasts as an industry expert. This is her first book.

About Greg Glasgow

Greg Glasgow is a longtime writer and journalist for numerous magazines and newspapers in Colorado and elsewhere, including The Denver Post, 5280, and the Boulder Daily Camera, where he worked for ten years as arts and entertainment reporter and editor. He lives in Colorado with his wife and coauthor, Kathryn Mayer, and their dog, Audrey. This is his first book.

Use these show notes to follow along with audio…

Segment one:

• “Disneyland On The Mountain” is about a ski resort that Disney attempted to build in California starting in 1965. For about 13+ years, the project dragged on until it hit the Supreme Court.

• Willy Schaeffler was Walt’s partner on the “Disneyland On The Mountain” project. He escaped Nazi Germany to the US and created several famous ski slopes and rides, especially in Colorado.

• “Disneyland On The Mountain” was intended to be built in Mineral King, CA near Sequoia National Park. There’s plenty of backstory in the book at this link https://www.amazon.com/Disneyland-Mountain-Environmentalists-Resort-Never/dp/1538173670 

• Walter spelled backwards (Ret Law) was the super secret project codename for “Disneyland On The Mountain” which was meant to be built in Mineral King, CA. More here: https://www.amazon.com/Disneyland-Mountain-Environmentalists-Resort-Never/dp/1538173670 

Segment two:

• What do the University of Denver, Walt Disney, and Willy Schaeffler have in common? It’s this combination that brought Kathryn and Greg together to write “Disneyland On The Mountain” https://www.amazon.com/Disneyland-Mountain-Environmentalists-Resort-Never/dp/1538173670 

• Silver was the first mineral to be discovered in Mineral King, California. In 1965, it became the chosen location for Walt Disney to build a ski resort. 

• Harrison “Buzz” Price is the economist that picked the locations for Disneyland and Disney World. More info on Wikipedia about Buzz is at this link https://en.wikipedia.org/wiki/Harrison_Price 

• Fun fact: Robert Brandt (husband to Janet Leigh, star of the movie Psycho) was the first person to approach the Federal government and ask for the land in Mineral King, CA to be put up for bid.

Segment three:

• Planned in the 1960s, the Walt Disney ski resort was going to include skiing, sledding, tobogganing, and ice skating in the winter months plus camping, biking, hiking, nature classes in the summer.

• Ed referenced a YouTube channel and how they have a video about the topic of the book, “Disneyland On The Mountain”. More here: https://www.youtube.com/watch?v=wWEk34VwcvU 

• So what ultimately happened to the land that Disney purchased for the now defunct ski resort? Disney still owns some land in the Mineral King, CA area.

• Talking about ski resorts, Ed referenced this Wall Street Journal article today about how an Idaho town could become the next Jackson Hole https://www.wsj.com/real-estate/luxury-homes/driggs-idaho-real-estate-market-57f888c9 

Segment four:

• Eventually, the planned Disney ski resort became mired in law suits. While Disney was not directly sued, the Federal government had to represent themselves in the case regarding the planned development.

• Fun TSOE fact: Did you know that Ron has a commemorative brick at Disneyland?

• A big THANK YOU to Kathryn and Greg for joining us today. Folks, if you have ever heard of Disney (that's all of you) then you NEED to read “Disneyland On The Mountain”. Link is here: https://www.amazon.com/Disneyland-Mountain-Environmentalists-Resort-Never/dp/1538173670 

Buy on Amazon

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #457: Simple Complexity — Interview with William Donaldson

This week Ron and Ed welcomed William Donaldson, author of Simple_Complexity to the show. Every business leader knows a business is a system, yet very few have studied systems thinking or system dynamics. This is a critical oversight, one that Simple_Complexity remedies. Simple_Complexity reveals the fundamental system archetype at work in your enterprise and prescribes new and exciting ways to reinvigorate your management thinking.

About Dr. William Donaldson
Dr. William (Willy) Donaldson has over 35 years of experience and has been CEO of 8 companies, and helped start dozens of companies. Willy is the Founder and President of Strategic Venture Planning, a management consulting firm that assists boards, investors, families, and senior management teams to maximize results.

Use these show notes to follow along with audio…

Segment one:

• Thank you to Mark Gandy for introducing us to Willy Donaldson. He interviewed Willy on April 30th https://cfobookshelf.com/the-systems-thinking-mindset/ 

• Much of the credit for getting into systems thinking goes to Willy’s father. They both have an engineering background in aeronautical and industrial engineering, father and son respectively

• The two top enemies of systems thinking are politics and academics, which might explain why you didn’t learn about this topic in school

• The book, Simple_Complexity, has the background you need on systems thinking. Here is the Amazon link: https://www.amazon.com/Simple_Complexity-Management-Guide-Systems-Thinking/dp/1683500741  

• Regarding systems thinking: “There are no boundaries between any of the departments or actions. They are all integrated.” —William Donaldson

Segment two:

• So WHY the underscore between Simple and Complexity in Willy’s book, Simple_Complexity? “You have to tie the two together.” —William Donaldson https://www.amazon.com/Simple_Complexity-Management-Guide-Systems-Thinking/dp/1683500741  

• Our guest today, William Donaldson, author of Simple_Complexity, loves this quote from George Box: “All models are wrong. Some are useful.”

• Willy visited the Enron website the day they filed for bankruptcy and pulled down their statement of values. They included transparency, honesty, and integrity. Of course they did!

• Unless you have the context [in a system] you’ll get completely lost. Imagine how often a manager does this and does not provide context for something. On #AskTSOE, we call this the effing debate  

Segment three:

• “We have to make our systems predictable and repeatable so that we can scale.” It’s a worthy goal but a fools errand. The model you are setting the system up for is constantly changing. You have to change as well.

• If you want to hear why Willy sometimes calls governance boards the “Chowder and Marching Society” then listen to segment three of the show. https://www.thesoulofenterprise.com/457 

• Culture emerges from the system. There is no culture in an organization initially. It’s just an assemblage of people. Your culture emerges and people pick it up. It comes from the interaction of the elements in an organization.

• Why are organizations calling people back to the office? One part of it is that if you’re not in person, you are missing out on serendipity and richness of interaction. 

Segment four:

• “Strategy is the art of being able to stay one step ahead of needing to be efficient.” —Dr. Jules Goddard

• “The future is already here – it's just not evenly distributed.” —William Gibson

• “Change brings about great uncertainty unless we are very clear and very precise with our language.” —William Donaldson; In other words, “Common language, common mental model”

• A big THANK YOU to Willy Donaldson for joining us today. His book is “Simple_Complexity: A Management Book For The Rest of Us: A Guide to Systems Thinking”. https://www.amazon.com/Simple_Complexity-Management-Guide-Systems-Thinking/dp/1683500741 

Buy on Amazon

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #456: Booxkeeping — Interview with Max Emma

Ron and Ed welcomed accounting thought leader Max Emma, CEO and Chief Bookkeeping Officer of Booxkeeping Franchise. BooXkeeping is a nationwide provider of affordable outsourced bookkeeping services to small and medium-sized businesses. We will talk to Max about his business model and why outsource bookkeeping will continue to grow. Booxkeeping Franchise is a low-cost and easy-to-operate bookkeeping business solution for aspiring entrepreneurs. As the CEO of BooXkeeping Franchise, Inc., They find potential franchisees and offer them a turn-key opportunity to join the BooXkeeping family and benefit from our innovative accounting services, proven systems, and ongoing support. Their goal is to offer franchising opportunities in all 50 states by 2025 and to bring new life to one of the world's oldest professions.

About Max Emma
With multiple years of experience as the CEO and Chief Bookkeeping Officer at BooXkeeping Corp., Max Emma leads a team of professional accountants who provide high-quality and reliable bookkeeping services to a variety of businesses nationwide. He created a unique structure for BooXkeeping Corp., where each client gets two to three accountants working on their behalf, ensuring the highest accuracy and efficiency for their finances. Max also oversee the preparation of the income statements and balance sheets that are critical for our clients' success and growth.

Use these show notes to follow along with audio…

Segment one:

• Today’s show is really special in that we are welcoming Max Emma, co-founder of Booxkeeping. He is our newest sponsor and guest on today’s show. His origin story begins in the former Soviet Union. Hear more during the first segment.

• Max started working with Qualcomm and has been through the construction industry, the landscaping industry, and ultimately the bookkeeping industry

• A few years ago Booxkeeping became a franchisor after Max had a “crazy” idea that he could do it. With his entrepreneurial background, of course he could!

• Max’s team offers customers a fixed price, the same team on each account, and at least two people doing the work that minimizes the possibility of errors. Franchisors have responded really positively to this.

• Billing at a fixed price was an EARLY innovation for Booxkeeping and Max talked about exactly what you would expect in terms of benefits. The model pulled cash forward and reduced receivables.

Segment two:

• Max has noticed over the years that it takes less time to handle bookkeeping tasks due to advancing technology. His company has embraced this in their pricing philosophy and pass along rate savings to the customers.

• Max started the Booxkeeping business - before franchising - by white label bookkeeping for CPA firms. That is still a large part of the original firm’s revenue model.

• Ron asked about the penetration pricing strategy employed by Booxkeeping Franchise today. “Absolutely” was Max’s response and he went on to explain how the pricing is tiered.

• From a tech stack perspective, Booxkeeping supports Sage, Quickbooks, Xero, and even Netsuite. They do not discriminate but do have a singular system that was developed exclusively for their internal operations.

Segment three:

• The general idea behind Booxkeeping is that a CPA firm can buy the service and outsource the bookkeeping work themselves.

• March of 2020 is when franchising was started for Booxkeeping but it took 14-15 months to really get started due to Covid.

• The very first customer of Booxkeeping Franchise was the very first employee at Booxkeeping! Talk about “what comes around goes around” :) 

• The Booxkeeping franchise fee is $29,995, $19,995 if you have an existing bookkeeping firm and also a 30% discount for active military, veterans, and first responders. Check out more info here: https://www.booxkeepingfranchise.com/ 

Segment four:

• What is the future for the bookkeeping industry? From Max: More and more outsourcing will continue to be the trend. Businesses will continue to need day to day numbers.

• The first Booxkeeping Franchise customer 7x her revenue after getting started. She didn’t learn accounting. Instead, she learned how to sell, how to network, what to say, and what not to say

• Max Emma provided a book to Ron called, “10x Is Easier Than 2x”. Ron found it extremely profound. More here: https://www.amazon.com/10x-Easier-Than-World-Class-Entrepreneurs/dp/140196995X 

• A big THANK YOU to Max Emma of Booxkeeping Franchise for being both a TSOE sponsor AND a great guest! Check out more information about his company here: https://www.booxkeepingfranchise.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #455: A Cautionary Tale about AI & Obviousity

This week Ron and Ed return to the work of literature for some inspiration. They delve into the pages of the Roald Dahl short story, "The Great Automatic Grammatizator" and Robert R. Updegraff's, “Obvious Adams: The Story of a Successful Businessman”. Both are available on the website that rhymes with Shamazon if you want to read them prior to listening.

The Great Automatic Grammatizator

By Dahl, Roald

Buy on Amazon

Obvious Adams: The Story of a Successful Businessman

By Updegraff, Robert R

Buy on Amazon

Use these show notes to follow along with audio…

Segment One:

• The Great Automatic Grammatizator is a story written by Roald Dahl in 1954 about an ingenious engineer who creates a machine called the Great Automatic Grammatizator that can write stories and novels in just minutes

• 1/4 Story summary: 📝 Lex is a struggling writer 🤔🖋️ who meets the eccentric inventor Max 🤪🔬. Max creates a machine 🤖💻 that writes perfect stories in seconds! 😱📚

• 2/4 📈 Lex sees the potential for profit 💰💡 and convinces Max to mass-produce the machine. They become wealthy 🤑💸, but creativity suffers 📉🤷‍♂️.

• 3/4 🖋️📜 Traditional writers lose jobs 🙅‍♂️📝, and stories lack heart ❤️🧡. Lex realizes the damage done and destroys the machine 🚫🤖.

• 4/4 Sound familiar? By the way, the tweets in this series were all written by ChatGPT.

Segment Two:

• Here is a significant sentence about an author’s perspective from Roald Dahl’s short story, The Great Automatic Grammitizator: “Because she saw the machines made stuff that was better than her own”

• Rory Sutherland has been encouraging people to read the superb business book, “Obvious Adams” for many years now. We found this tweet from 2016. https://twitter.com/rorysutherland/status/693412082876825601 

• Obvious Adams is about Adam, a simple, insightful man who sees solutions where others don't. He uses common sense to solve business problems (which can be a bit of a lost art). https://www.amazon.com/dp/0990790916?tag=verainst-20 

• Did you know that our Patreon.com/TSOE is sponsored by @90Minds? Need a mind? Find one at 90minds.com

Segment Three:

• The "Five Tests of Obviousness" are a concept outlined in the book Ed and Ron are discussing today: "Obvious Adams" by Robert R. Updegraff https://www.amazon.com/dp/0990790916?tag=verainst-20 

• The “Five Tests of Obviousness” encourage you to approach problem-solving with simplicity and common sense. Remember, sometimes the most effective solutions are the ones that are right in front of us.

• Have you heard this in a business context? “We tried it before and it didn’t work.” Based on the “Five Test of Obviousness”, maybe the timing wasn’t right???

• “Sometimes the first duty of intelligent men is the restatement of the obvious” —George Orwell.

Segment Four:

• “If you have always done it that way, it is probably wrong.” —Charles Kettering

• Related to the “Five Tests of Obviousness”, Ron and Ed talked about the “5 Creative Approaches To The Obvious” on segment four of the show. Here is a quick link: https://marketinghuddle.com/wp-content/uploads/2010/12/Obvious-Adams-The-Lost-Sections.pdf 

• This link has a PDF of the 5 creative approaches to the obvious https://marketinghuddle.com/wp-content/uploads/2010/12/Obvious-Adams-The-Lost-Sections.pdf 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #454: Interview with ChatGPeterD — an AI conversation with Peter Drucker

This week Ron and Ed literally explore the boundaries of AI by conducting an "interview" with an AI incarnation of Peter Drucker. Using ChatGPT and Speech Synthesis from ElevenLabs, Ron and Ed ask the questions and ChatGPeterD provides the answers. Topic range from knowledge workers, to annual appraisals, to AARs, to consulting in a hot tub.

What would be more fitting than AI generated show notes?

• Peter’s legacy in the business world.
  Peter reflects on the impact his ideas have had on the business world and the global reach of his principles.
  Peter shares some of his thoughts on the future of leadership.
  The notion of social responsibility of business and the concept of management as a liberal arts education.
  The idea of planned abandonment and how it can help organizations maintain a competitive edge.

• The social responsibility of business and profits.
  Milton friedman's argument that the social responsibility of businesses to increase profits is not the primary purpose of a business.
  The debate between shareholder value and social responsibility is not an either or proposition.
  The challenge lies in aligning these dual objectives in a way that leads to sustainable and responsible business practices.
  Profitability and social responsibility can coexist and reinforce each other.
  Vivek Ramaswamy and others have raised concerns about the manipulation of societal concerns and the phenomenon of greenwashing.
  Businesses should approach social responsibility with a genuine and sincere commitment to social responsibility.

• How are the knowledge economy and knowledge workers different from the previous models?
  How the knowledge economy and knowledge workers are different than those that preceded them, and how they are different from the earlier economies.
  A word from the sponsors, soul of enterprise.
  Knowledge workers rely on their expertise, problem solving skills and ability to think critically and adapt to changing circumstances.
  Innovation and creative problem solving become essential for staying competitive.
  A holistic approach to management is required, encompassing factors such as meaningful work autonomy, professional development, work-life balance and recognition.
  Why he chose to call himself a social ecologist rather than a management thinker.

• Does one learn more from success vs. failure?
  Success and failure offer distinct and valuable learning experiences, and the true wisdom lies in embracing and extracting insights from both outcomes, success and failure.
  Peter explains why he believes that success is often more readily transferable to different situations due to the identification of principles applied in diverse scenarios.
  Efficiency refers to the ability to accomplish a task or produce an output with the least amount of resources, time or effort. effectiveness is about doing the right things.
  A word from

• Why are you critical of annual performance appraisals?
  Critical of knowledge workers performing tasks that distract from their real work, such as nurses filling out paperwork or accountants and lawyers filling out timesheets.
  Critical of annual performance appraisals.
  Performance appraisals were initially introduced with the intention of evaluating and improving employee performance, but there are several limitations associated with the traditional annual appraisal process.
  The importance of frequent and informal feedback mechanisms.
  The evolution of performance appraisal systems has been a topic of ongoing debate and refinement in the management field.
  The theory of the business, the mental model that guides an organization's actions, choices and priorities.

• Innovation and Entrepreneurship.
  Innovation and entrepreneurship are closely related concepts, but they have distinct meanings and implications within the realm of business and management.
  You suggest that leaders should spend the majority of their time pursuing opportunities rather than solely focusing on solving problems, based on his belief in proactive and strategic management.
  Peter wrote a book in 1993 called the post-capitalist society, which aims to provide insights into the evolving nature of society and the potential shifts in society.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #453: Interview with Seth David from Nerd Enterprises

Ron and Ed welcome Seth David from Nerd Enterprises, Inc to talk about his work with accounting professionals and customers. Seth's superpower is communicating complex financial concepts in easy-to-understand terms. Going beyond accounting, he delves into the intersection of business and technology, recently authoring a piece on why the internet browser experience is long overdue for an overhaul.

Use these show notes to follow along with the audio…

Segment one:

• Seth has a reputation for being at the forefront of technology. He wrote a blog post a few months ago about the lack of innovation in the internet browser experience. Check it out here: https://www.nerdenterprises.com/blog/the-internet-browser-experience-is-long-overdue-for-an-overhaul 

• More recently, Seth wrote an article called “Living on the Edge” about his switch to Microsoft Edge. He doesn’t advocate for all Microsoft products but enjoys using the Edge browser. https://www.nerdenterprises.com/blog/living-on-the-edge 

• TIL that Microsoft Edge saves your tabs even when you close the application. I have personally closed Chrome by accident and cursed under my breath because it doesn’t remember all of your tabs 🤣 🤣 🤣

• What are people missing about AI beyond ChatGPT? Seth has a great opinion on this as an example. Think about eCommerce data and imagine if you, as an accountant, could provide competitive pricing information to your customers. 

• With respect to Artificial Intelligence, Seth says, “People who avoid it will be forced to use it or just get left behind.” 

Segment two:

• Anyone who knew Seth in high school would never have guessed that he would have gone into accounting. He was much more of a creative than anything else. You can clearly see the intersection today in his work.

• Seth’s backstory takes several unexpected turns during segment two of the show today. Folks….I can’t do this stuff justice in a tweet. You should listen to Seth describe his path to California from New York via Wall Street and a drug addiction.

• Seth seems to give away his intellectual capital much like Ron and Ed. It forces you to replenish it and keeps you on the bleeding edge. The Nerd Enterprises blog is just one example https://www.nerdenterprises.com/blog/ 

Segment three:

• Seth recently bifurcated his business. He sold his bookkeeping clients to a long time associate and focuses on training now. “Better Tools. Better Training. Bulletproof Results!” https://www.nerdenterprises.com/ 

• “If you make me Google something to understand what you are saying, you have failed at Communications 101.” —Seth David

• When Seth thinks about accounting services and how compliance based it is, it seems difficult to scale because you will most commonly trade your time for money.

Segment four:

• Agility trumps ability. I don’t have to be the most skilled person on the planet. “The agility refers to your ability to have a bunch of tools in your toolbox.” —Seth David 

• “When you drop a rock into a lake, the lake receives that rock. It takes it all in.” —Seth David …That’s what Seth does when learning about new tools to help him and his customers do a better job.

• A big THANK YOU to Seth David for joining us today. Folks, he likes it when you talk nerdy to him. Check out more of his work at https://www.nerdenterprises.com 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #452: Business Models of the Future Knowledge Worker with Hector Garcia

Ron and Ed usually wait six months before having a previous Guest reappear on the show. This is one of the exceptions. Our conversation for this show focused on a new conference that Hector and his team are developing, Business Models of the Future Knowledge Worker. Hector shared his thoughts and we had a live brainstorming event around topic for conversation at the conference.

Use these show notes to follow along with the audio…

Segment one:

• Will accountants be displaced by AI? Well, yes. Those that do not use AI tools to help themselves will be replaced. Hector has been doing a large amount of experimentation here and talked about it today.

• Will AI continue to advance at a rapid rate? Of course it will. Look at something as simple as nails. They’ve been around for about 100 years and CONTINUE to show even tiny advances. And that’s just a simple metal nail.

• ChatGPT has opened Hector’s mind to the creative possibilities and the things he can do as an accountant and leader of the profession. He experiments with these tools because he wants to stay at the forefront and be a part of the movement.

• It’s time for “self disruption”. Creation…preservation…and destruction . Hector studied Hinduism in college and draws a strong parallel to his desire for “self disruption” in the accounting profession.

Segment two:

• Hector was very kind to give Ron Baker a shout out today for his work around Time’s Up. Check out more information at this link if you are curious or interested https://timesupclub.com/ 

• Hector is REALLY excited about a conference on October 25-27th in Miami called Creative Business Models for Accountants. Here is the link for the FINAL 22 tickets! https://altaccountant.com/creative/ 

• Subscription is the easiest, most friction free way to collect revenue from customers but THEN it allows us as accountants to focus on important things like the delivery platform and overall customer experience

• Hey! Did you know that our Patreon channel at Patreon.com/TSOE is sponsored by @90Minds? Need a mind? Find one at 90Minds.com

Segment three:

• Alan asked a great question today about changing the business model of his industry. Ron, Hector, and Ed all had some great thoughts that are DIFFICULT to capture in 140 (280? 5,000?) characters. Check it out in segment three.

• In wealth management, customers have been taught that paying a finance professional is only a function of how much money is being moved around. But the real advice has almost nothing to do with just moving money around.

• The customer of the future will buy from firms that provide two things: 1) to feel good/secure about who they are interacting with and 2) to work with the company providing the least amount of friction when working towards a goal

• “The best products in the world offer some sort of lifetime guarantee and that’s what people buy.” —Hector Garcia

• Hector recently made the shift to subscription and had this short, INSIGHTFUL statement to share: “You transform your firm one customer at a time.”

Segment four:

• For rising seniors in high school, Ed is not convinced that the job they will do even exists yet. In fact, he’s not even sure their final major in college exists….just FOUR YEARS from now. How’s that for a rate of change?

• “If we are professionals understand that communication is about translation — reframing a problem — you can move much faster.” —Hector Garcia

• A big THANK YOU to Hector Garcia for joining us today. There are only 22 TICKETS left (as of this tweet….er….”X”) for his conference in October in Miami. Check our more info at this link https://altaccountant.com/creative/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #451: Mishmash

In keeping with our tradition of Bric-a-brac, Grab-bag, Potpurri, and Miscellany, Ron and Ed present their thoughts on some articles and posts on varied topics that require more than just a cursory conversation, but not quite a full episode.

Ron’s links mentioned during the show:

• Happy Birthday Milton Friedman!
  https://www.nationalreview.com/2023/07/milton-friedman-still-winning-the-argument/

•  The Modern Quest For Immortality
  https://www.nationalreview.com/magazine/2023/07/10/the-modern-quest-for-immortality/

•  The Question
  https://www.dissentmagazine.org/wp-content/files_mf/1353953160genovesethequestion.pdf

• Rightsizing China
  https://www.nationalreview.com/magazine/2023/06/12/chinas-coming-decline/

•  A difficult new world, Special Report: The Car Industry, The Economist, April 22, 2023
  https://www.economist.com/special-report/2023-04-22

• Psychologically Safe Work Environment
  https://businessbreakthrough.online/report/build-psychological-safety-in-your-firm/

Use these AI generated show notes to follow along with the audio.

School vouchers.

• Happy birthday to Milton Friedman!

• Friedman made the case for school vouchers in the 1955 essay, and that idea found its way into capitalism and freedom.

• The number of earnings calls where executives mention environmental initiatives is declining.

They don't want to reform school they want to end school.

• Nobody wants to reform school. Nobody wants to end schooling. What parent wants to do this?

• Moving to a voucher system or an educational savings account program, or an esa program in Arizona, gives a lot more flexibility in terms of finances and makes so much sense.

• State after state after state is rolling out this program across all political sectors.

• The modern quest for immortality, by lionel shriver, a novelist and columnist for British Spectator magazine.

• With eternity at stake, with that at stake who would be voluntary for the military?

• The burden of finding purpose and meaning could grow unbearable, she says.

What is the quality of the extra time?

• Concerns about the quality of that extra time, and how it would impact the social security system from an economic standpoint.

• The knowledge problem of a shrinking worldwide population and the need for more knowledge, learning, growth and innovation.

• The summer of 1994, the book, well it's called the question, by Eugene Jenna Basie, a historian.

• We broke all records for mass slaughter piling up 10s of millions of corpses in less than three quarters of a century when the asian figures are properly calculated.

• The importance of subjecting basic premises to stern review and own up to all that has gone wrong and take the measures necessary to guarantee against the next round of the same old story.

• The turning point that shifted Jonah's mind from supporting the collapse of the Soviet Union to questioning it.

How hard is it to change a culture of denial?

• The soviet union has not accounted for its past. The soviet union has done nothing to rectify the wrongs of the Soviet Union.

• It is hard to change a culture, which is why theories work so well, because it is just the language and the persuasion.

• China under the communist party is a nation in long-term decline, weaker than it wants the world to believe.

• More than half of china's middle school age students are unable to advance to high school or choose not to complete junior high, some 400 million future working age chinese may be classified as cognitively handicapped.

• Unemployment rate in china is 20% higher than the general population, and they are dependent on Russia for natural resources.

• China is no longer the low cost producer.

Corruption in the car industry.

• The two party system in China is better than a one party system, for sure, but they still have a lot of issues that nobody talks about.

• The economist's special report on the car industry is one of their special reports from April 22, 22, this year.

• Global car production peaked at 73 million passenger vehicles in 2017, but is expected to drop to 62 million by 2022, according to mckinsey.

• Legacy carmakers are facing a big challenge.

• By the end of this decade, the sticker price of most evs will be equal to that of an internal combustion engine.

• By 2020, charging could go from 66 billion in 2023 to 300 billion by 2020. Most of it will go to tesla because they get the half.

Subscription model for cars.

• The electric engine is a very basic concept. The basic concept is unchanged completely, and it is just as simple to produce. It feels like driving a slot racer.

• The emerging subscription model for cars is easier for a tech firm to make cars than it is for a carmaker.

• Only about 8% of petrol heads are real car buyers, and only 1% of new cars are bought by people under the age of 24, according to mckinsey.

• Sony and Honda are teaming up with software companies to make evs and alibaba, huawei, tencent and zami.

• I have a business breakthrough. Paul shrimpbling, humanize the numbers. Book. The fearless organization creating psychological safety in the workplace for learning, innovation and growth. By amy edmondson.

• Project aristotle, a multi-year study of 100 Navy teams at Google that looked at their composition, educational backgrounds, skills, personality traits.

The importance of building trust in an organization.

• There has been an uptick in conversation about sage on the sage thought leadership podcast and other psychological safety podcasts.

• After action reviews are a perpetual tool for psychological safety.

• The importance of the debrief of course in the air force and the importance of rapid decision making under uncertainty.

• The book is one of his top books of the year.

“Time sheets are not evil though what we do with them sometimes is”

• 75% of revenue in a professional still generated by the billable hour.

• Time tracking is the tool, but it is the ideology around the timesheet that is the problem, not the idea of who is implementing it. No good way to implement a crappy idea.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #450: Interview with Bryan Caplan

Ron and Ed welcome Bryan Caplan, professor of economics at George Mason University. Bryan is a prolific author and speaker on wide range of economic and other fantastically nerdy topics from voting to role playing games. Bryan's substack, Bet on It, has addressed the following topics in the month of July alone:

• Cars and convenience

• An offer to illustrate a book of his using AI

• Abusers giving vice a bad name

• Non rival assets for the poor

• Open borders on trial

• The status of women

Prepare to be impressed.

About Bryan Caplan

Bryan Caplan is a Professor of Economics at George Mason University and New York Times Bestselling author. He has written The Myth of the Rational Voter, named "the best political book of the year" by the New York Times; Selfish Reasons to Have More Kids; The Case Against Education; Open Borders (co-authored with SMBC's Zach Weinersmith); How Evil Are Politicians? He is the editor and chief writer for Bet On It, the blog hosted by the Salem Center for Policy at the University of Texas. He has published in the New York Times, Washington Post, Wall Street Journal, TIME, Newsweek, Atlantic, American Economic Review, Economic Journal, Journal of Law and Economics, and Intelligence, and appeared on ABC, BBC, Fox News, MSNBC, and C-SPAN. An openly nerdy man who loves role-playing games and graphic novels, he lives in Oakton, Virginia, with his wife and four kids.

Use these show notes to follow along with the audio.

Segment one:

• The Case Against Education came out in 2018. It’s thought provoking work from our guest today, Bryan Caplan. Education is NOT a bad idea. It’s a bad idea to subsidize it. https://www.amazon.com/Case-against-Education-System-Waste/dp/0691174652 

• From Bryan today, based on his work in “The Case Against Education”… -> Education is a passport to real training which happens on the job.

• The 80/20 rule applies to Bryan’s analysis of education. From him, “When countries invest in education […] they seem to only get about 1/5th of what you would expect when compared to the individual.”

• Bryan was understandably hesitant on this statement. There’s a LOT to unpack on his comment about public education and a tweet doesn’t do it justice: “Looking at the facts, the truth is most parents don’t want something that different from what exists. Most parents are at least content with the status quo.”

Segment two:

• Yes, Bryan writes some great books. But he also writes at Substack regularly. Check it out here: https://betonit.substack.com/ 

• If you’ve got a classroom and there’s an empty seat you can add a student at very little cost. But there’s MUCH more to the argument and it’s detailed in this article, “The Cost is Zero - or Astronomical” https://betonit.substack.com/p/the-cost-is-zero-or-astronomical

• From Bryan, “NINBY is Economic Illiteracy” and, as he states in the article, “Why is housing regulation so draconian?” More here https://betonit.substack.com/p/nimby-is-economic-illiteracy  

• “When the supply of housing goes up, prices go down.” —Bryan Caplan. More at this article https://betonit.substack.com/p/nimby-is-economic-illiteracy

Segment three:

• “Selfish Reasons to Have More Kids” is a book written by Bryan. He talked about his take on declining populations during segment three of the show today. https://www.amazon.com/Selfish-Reasons-Have-More-Kids/dp/0465028616 

• Are declining populations sustainable? “The answer is the status quo is not sustainable.” —Bryan Caplan, genius, nerd, and thinker

• “Open Borders: The Science and Ethics of Immigration” is a book by Bryan in which he makes the case for unrestricted immigration. But he does it logically and with an open mind so do check the book out.https://www.amazon.com/Open-Borders-Science-Ethics-Immigration/dp/1250316960 

Segment four:

• Bryan Caplan — TSOE guest and professor at George Mason University — gave his economics test to ChatGPT back in January. It received a D. 3 months later it got an A. https://www.businessinsider.com/economics-professor-shocked-by-chatgpts-progress-exam-three-months-2023-3  

• Are you an artist and willing to take a risk on Bryan Caplan’s artificial intelligence contest? You DEFINITELY need to check out this link https://betonit.substack.com/p/amore-infernale-the-ai-illustration  

• On ChatGPT, Bryan mentioned on the show that you cannot go and type in “tell me how to get what I want”

• A big THANK YOU to Bryan Caplan for joining us today. Check out his great work on Substack and all of his books on Amazon. https://betonit.substack.com/ 

• Our Patreon channel at Patreon.com/TSOE is sponsored by @90Minds. It’s a matter of minds at 90Minds.com.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.