Archive for the ‘business’ Tag

Money Can’t Buy Me Art

When you see how expensive some works of art are today, it may seem illogical to say that “money can’t buy me art.” After all, a painting by Gustav Klimt sold a few years ago for $135 million.

But according to a recent Paul Solman report on the PBS News Hour, it turns out there’s a big difference between buying a product of art and paying for the artistic process. Apparently, Klimt might have had a harder time creating that painting if he knew he was going to sell it for that much money.

Solman starts out with a puzzle:

The candle, box of tacks, book of matches, an old puzzle with a strangely relevant economic message. Objective? Fix the lit candle to the wall so no wax hits the table.

Economics: The faster you do it, the more money you make. Punchline: Conventional economics is wrong, because the greater the monetary incentive, the longer the solution takes, a solution you will see in a bit.

Relevance? Executive pay and Wall Street bonuses, which might not enhance, but actually retard, high performance, or so says writer Dan Pink, once Al Gore’s chief speechwriter.

Pink explained why this could be the case:

We tend to think that the way you get people to perform at a high level is, you reward what you want and punish what you don’t want, carrot and stick. If you do this, then you get that.

That turns out, the science says, to be an extraordinarily effective way of motivating people for those routine tasks, simple, straightforward, where there’s a right answer. They end up being a terrible form for motivating people to do creative conceptual tasks.

Why? Solman interviewed Maury Weistein, CEO of computer sellers System Source. Weinstein argued that the key reason his company had been successful for three decades – an eternity in the computer business – was that 15 years ago they dropped paying commissions to sales people:

We find that money often disrupts relationships. It disrupts customer efforts. And, sometimes, it makes the customer feel like a piece of meat, where you can’t trust the salesperson’s recommendations. And that’s a very slippery slope at that point.

As in so many other things, the key is where your energy is focused. If your primary motivation is getting a big commission, your concern for the customer’s satisfaction is secondary. And in many cases the customer will sense that.

So if money isn’t your primary motivation, what can be? One possibility is creative fulfillment. As John Yodsnukis, who works with open source software (for which there is no payment), points out:

You know, you need adequate compensation. You have to live. You have to survive, OK? But, if you ask an artist why they became an artist, a lot of them will say, I can’t do anything else. I have to do this.

It’s the same thing here, you know? It’s the fulfillment, the love of doing it is reason enough.

This may all sound a little strange in our current, money-crazed culture. Today’s mass media is overwhelmingly oriented towards selling something, and individuals are commonly defined as consumers. All too often, our focus in this world is on the next purchase; our creativity is channeled into creating the perfect house, having the right car, wearing the right clothes, or just getting the best deal.

This even applies to our personal creative pursuits. As a photographer, I often hear the siren call of a new camera or a new lens that will supposedly enhance my creativity. It can be quite seductive – and expensive!

If we really want to live fulfilling lives – and stay financially solvent – we need to be mindful of where we are focused. Are we focused on the ephemeral – money, possessions, glory and such – or are we focused on that which truly gives us personal fulfillment?

In his book Zen In The Martial Arts, Joe Hyams offers a Zen story that applies here:

A young boy traveled across Japan to the school of a famous martial artist. When he arrived at the dojo he was given an audience by the sensei.
“What do you wish from me?” the master asked.
“I wish to be your student and become the finest karateka in the land,” the boy replied. “How long must I study?”
“Ten years at least,” the master answered.
“Ten years is a long time,” said the boy. “What if I studied twice as hard as all your other students?”
“Twenty years,” replied the master.
“Twenty years! What if I practice day and night with all my effort?”
“Thirty years,” was the master’s reply.
“How is it that each time I say I will work harder, you tell me that it will take longer?” the boy asked.
“The answer is clear. When one eye is focused upon your destination, there is only one eye left with which to find the Way.”

A Whole Earth Approach to Economic Growth

Happy Earth Day!

Actually, I suspect this isn’t such a happy day in some quarters. It is taken as a given by some businessmen, politicians and pundits that environmental concerns exist in a zero-sum relationship with economic growth. Their thinking appears to be that anything that will be good for the environment will be bad for business.

But that is not necessarily so. New York Times columnist Thomas Friedman recently had a column about the novel approach Costa Rica has taken in balancing economic and environmental concerns. He notes:

More than any nation I’ve ever visited, Costa Rica is insisting that economic growth and environmentalism work together. It has created a holistic strategy to think about growth, one that demands that everything gets counted. So if a chemical factory sells tons of fertilizer but pollutes a river — or a farm sells bananas but destroys a carbon-absorbing and species-preserving forest — this is not honest growth. You have to pay for using nature. It is called “payment for environmental services” — nobody gets to treat climate, water, coral, fish and forests as free anymore.

Friedman observes that much of Costa Rica’s economy is based on tourism and agriculture, so preserving its environment is integral to its economic health. So in the 90s they addressed this issue organizationally:

“In Costa Rica, the minister of environment sets the policy for energy, mines, water and natural resources,” explained Carlos M. Rodríguez, who served in that post from 2002 to 2006. In most countries, he noted, “ministers of environment are marginalized.” They are viewed as people who try to lock things away, not as people who create value. Their job is to fight energy ministers who just want to drill for cheap oil.

But when Costa Rica put one minister in charge of energy and environment, “it created a very different way of thinking about how to solve problems,” said Rodríguez, now a regional vice president for Conservation International. “The environment sector was able to influence the energy choices by saying: ‘Look, if you want cheap energy, the cheapest energy in the long-run is renewable energy. So let’s not think just about the next six months; let’s think out 25 years.’ ”

Beyond that, Friedman reports that the Costa Ricans factor in the value of a healthy environment for the long-term health of local businesses, and so have a carbon tax that helps support communities that protect the forests around them.

As we celebrate another Earth Day, we might consider the benefits of taking an holistic approach to dealing with economic growth and the environment.
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