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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.

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:

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:

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:

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:

Segment three:

Segment four:

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 #449: The Innoficiency Principle featuring Blair Enns

Blair Enns is the founder of Win Without Pitching, the sales training organization for creative professionals. He is the author of two books, The Win Without Pitching Manifesto and Pricing Creativity: A Guide to Profit Beyond the Billable Hour. He is the co-host, along with David C. Baker, of the podcast 2Bobs: Conversations on the Art of Creative Entrepreneurship.

Best of all, he was the guest on this show with Ron and Ed. A good portion of the show was spent talking about The Innoficiency Principle. Blair laid out the thoughts behind this principle at this link and described it quite succinctly. From Blair: “The Innoficiency Principle states that innovation and efficiency are mutually opposable goals. In any reasonably functioning organization, one cannot be increased without decreasing the other.”

Use these show notes to follow along with the audio.

Segment two:

Segment three:

Segment four:

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 #448: Systems Thinking Made Simpler

Join Ed and Ron as they discuss the book by William Donaldson, PhD: Simple_Complexity: A Guide to Systems Thinking. Systems are both simple and complex, which contain amazing constructs that one often must marvel. Systems also have a mind and a rhythm of their own. The parts do not exist independent of the whole, and you can't understand the parts without understanding the whole, and the whole is greater than the sum of the parts. Your organization's culture is an emergent property of your system. If you want to change the culture, you have to change the system, which is comprised of three components: Elements; Interactions; and Purpose. Hat tip to Mark Gandy at CFO Bookshelf for interviewing the author of this excellent book.

Use these show notes to follow along with the audio.

Segment one:

Segment two:

Segment three:

Segment four:

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 #447: Third interview with Tim Williams

For the third time, Ron and Ed welcomed back Tim Williams, one of the foremost thinkers about professional firm strategy and positioning. Tim thinks deeply about these topics, but has the ability to simplify and communicate complex topics to us and his audiences worldwide. We also asked him about his thinking with regard to generative AI and the potential impact on advertising and marketing.

Use these show notes to follow along with the audio.

Segment one:

  • If you are a professional knowledge firm, then Tim Williams book was written just for you https://www.amazon.com/Positioning-Professionals-Professional-Knowledge-Differentiate/dp/0470587156

  • You heard it here first. Tim Williams thinks that AI is the final nail in the coffin for timesheets. It’s a bold prediction but those that come true feel nothing but bold in hindsight.

  • Written in 2019 (wow!!!), Tim Williams article titled “Billing by the Nanosecond?” is something we suspect most of you will be interested in reading https://www.linkedin.com/pulse/billing-nanosecond-tim-williams 

  • “When it comes to positioning we are looking for patterns and common threads in the experience and expertise of knowledge workers.” —Tim Wiiliams

  • “In the end there is still a lot of subjective judgement that needs to be applied in the work of an ad agency. [AI] is a riffing partner that helps explore possibilities and options.” —Tim Williams

  • Are there AI roles popping up in the advertising agency space? Yes. A few examples from Tim: AI artists spend their days with Stable Diffusion, Dall-E, or Midjourney; AI writers create simple paragraphs to plugin as copy. 

Segment two:

Segment three:

  • What’s happening with subscription in the advertising space? Tim preaches it everywhere he goes and dives into the details during segment three of the show.

  • Does Tim see any subscription fatigue in his industry? No because it’s not nearly established enough.

  • “The most interesting new examples of productization involve some form of AI [such as] prediction machines developed by PR firms.”

  • Ogilvy recently announced the AI Accountability Act. More here: https://www.shots.net/news/view/ogilvy-launches-the-ai-accountability-act 

  • What’s the new magic work? “Experimenting with how AI can easily develop storyboards instead of sitting down and hiring an Illustrator.” —Tim Williams

Segment four:

  • “The way in which the agency business operates has become so reactionary. They talk about filling scopes of work as through they are fast food operators instead of providing thought leadership.” —Tim Williams

  • When it comes to leading brands in any industry, “It is the role of the leader to educate. Generally, what you are doing is educating about the category and not the brand.” —Tim Williams

  • “You must be boxed in otherwise you have no strategy. The four walls of the box are what, who, way, and why.” —Tim Williams

  • A big THANK YOU to Tim Williams for joining us today. If you loved listening today, check out his firm — Ignition Consulting Group — for LOTS of great writing from Tim. https://www.ignitiongroup.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 #446: On Why AI Will Save the World by Marc Andreessen

In this episode Ron and Ed dissected a recent blog post by Marc Andreessen entitled "Why AI Will Save the World." It is a deep and thoughtful piece by someone who has done some very deep thinking. We discussed the items upon which agree and those with which we quibble. The post can be found here.

Use these show notes to follow along with the audio.

Segment one:

Segment two:

Segment three:

Segment four:

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 #445: Second interview with Peter Block

Ron and Ed welcomed back the Godfather of modern consulting, Peter Block, for his second appearance. This episode is dedicated to the possibility that human beings are better served when we confront our freedom (the title of Peter's new book). Doing so, is difficult, challenging, and not for everyone. If you want to begin the process of confronting your own freedom, you are invited to participate in this episode. Safe return doubtful!

About Peter Block

Peter Block is an author and citizen of Cincinnati, Ohio. He is a partner in Designed Learning, a training company that offers workshops designed to build the skills outlined in his books. His books include Flawless Consulting, Stewardship, The Answer to How Is Yes, Community, The Abundant Community, and An Other Kingdom. Peter is a founder of the Common Good Collective, is part of the Common Good Alliance of Greater Cincinnati, and was a member of his local neighborhood council. Peter’s work is in the restoration of the common good and creating a world that reclaims our humanity from the onslaught of modernism.

To find out more, see: www.peterblock.com

Designed Learning, Inc. (www.designedlearning.com) offers training and consulting in Flawless Consulting and Community: The Structure of Belonging or Leader as Convener.

Use these show notes to follow along with the audio.

Segment one:

  • Peter Block mentions in his new book, “The cost of freedom is anxiety. This is not a great value proposition.” The traditional professional contract effectively says, “You work for us and we will keep you safe. We will take care of you.” https://www.amazon.com/Confronting-Our-Freedom-Accountability-Belonging/dp/139415609X

  • “The annual performance appraisal is control masquerading with an incentive to make things better.” —Peter Block

  • Why do leaders think accountability is reluctantly chosen? “It shows that evidence is not persuasive.” —Peter Block

  • Question to an employer: “What do you do?” Employer: “I grow people.” Peter Block: “Really? So you’re a gardener and I’m a weed?”

  • “The wish for safety [in an organization] is an illusion. Why not choose an illusion that better serves you.” —Peter Block

  • “When you’re sitting in a dentist chair how long is a minute? Too long. When you’re in love how long is a week? Too short.” —Peter Block

Segment two:

  • “Philosophy offers the possibility of providing new ways to explore old ground.” —Peter Block. This is not the language of the engineer or economist. It places meaning first.

  • Anxiety is the price you pay for your freedom. Peter Block takes this great quote further in his most recent book. More here https://www.amazon.com/Confronting-Our-Freedom-Accountability-Belonging/dp/139415609X 

  • “Businesses — organizations — are human systems. Even if it’s 98% AI. Artificial Intelligence is interesting but it doesn’t mean it solves anything fundamental.” —Peter Block

  • We shouldn’t avoid these topics. In business you should ask, “What doubts do you have about what you are doing? What anxiety do you have?” —Peter Block

  • “Depression is looking backwards. Anxiety is looking forward.” —Peter Block

Segment three:

  • On entrepreneurship being risk, “One of the gifts of the scientific method is that it teaches us that failure is as valuable as success.” —Peter Block

  • As a leader, “You don’t demand predictability. There is nothing more frightening than predictability.” —Peter Block

  • “If I can’t say no, my ‘yes’ doesn’t mean anything.” —Peter Block

  • On gifts and finding purpose in an organization, “You shouldn’t have to retire to find out what you meant to this place.” —Peter Block

  • “If ever there was a moment when the imposter syndrome came true, it’s in the publishing of a book.” —Peter Block (and his NEW BOOK in the link) https://www.amazon.com/Confronting-Our-Freedom-Accountability-Belonging/dp/139415609X

Segment four:

  • On Peter’s general philosophy on solving problems “I don’t want to argue against problem solving. I just don’t want it to define who I am.”

  • “The enemy of aliveness is likemindedness.” —Peter Block 

  • On the obscenity of corporate culture, Peter Block says (with enthusiasm), “To leave a meeting without a list! My God. You can go to hell for leaving a meeting without a list.”

  • “As soon as you take something to scale, you force it to be the same no matter where it goes.” —Peter Block

  • A big THANK YOU to Peter Block for joining us today. Please check out Designed Learning at @dl_global and his new book https://www.amazon.com/Confronting-Our-Freedom-Accountability-Belonging/dp/139415609X

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 #444: The ESG Illusion

Another deep dive into the perils of ESG. This is based on Vivek Ramaswamy's latest book, Capitalist Punishment: How Wall Street Is Using Your Money to Create a Country You Didn't Vote For. Ed and Ron will provide the main points from this critical look at ESG. If you've wondered how FTX can achieve a higher score on its "G" (Governance) than did Exxon-Mobil, you won't want to miss this show.

Use these show notes to follow along with the audio.

Segment one:

  • Have you read Capitalist Punishment yet by Vivek Ramaswamy yet? One of the things Ron and Ed loved about the book is that Vivek backs it up with evidence and examples from multiple sources. https://www.amazon.com/Capitalist-Punishment-Street-Create-Country/dp/0063337754 

  • Greenwashing is fraudulent. The SEC has sued several investment firms for greenwashing. Green SMUGGLING occurs when a non-ESG fund smuggles ESG policies into their investment practices.

  • The levels of complexity in the book Capitalist Punishment make talking about the topic difficult. It’s not 2D or 3-dimensional but rather a series of tentacles that provide for an intense level of complexity. However, it is NOT conspiracy theory

  • “ESG is the traffic cop that writes tickets to enforce stakeholder capitalism” —Vivek Ramaswamy https://www.amazon.com/Capitalist-Punishment-Street-Create-Country/dp/0063337754 

  • Both CSR and SRI make no pretenses about maximizing returns but ESG does. ESG claims a higher level of return while solving all of the world’s injustices.

Segment two:

Segment three:

  • We are going to be live at Scaling New Heights in two weeks. If you will be there, check us out on the main stage! #SNH23

  • In China, the E stands for “E”nergy supply, S is all about the “S”uggestion, and G is the most fun. In the US, good “G”overnance means not being owned by a single, autocratic dictator. (Are we banned in China yet?)

  • Regarding ESG, “This is politics. It belongs in the political realm. It doesn’t belong in the C-suite. Nobody elected Larry Fink.” —Ron Baker

  • What we commonly hear is, “When the accountants get ahold of ESG they will be able to put standards in place.” Ron and Ed would like to know, “Based on what?” It’s a genuine question to the community.

  • Sam Bankman-Fried was able to get FTX a higher ESG score than Exxon-Mobil. 

Segment four:

  • Great background on ESG from the show today. What can you do? Start asking questions of your money managers and investment funds.

  • Based on the book Capitalist Punishment by Vivek Ramaswamy, funds are pouring out of ESG. The trend is shifting based on investment activity. https://www.amazon.com/Capitalist-Punishment-Street-Create-Country/dp/0063337754 

  • “At least with David Copperfield making the Statue of Liberty disappear, he is entertaining me. [The ESG Illusion] is not entertaining me.” —Ron Baker

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 #443: Interview with Robin Hanson

Joining Ed and Ron this week is Robin D. Hanson of associate professor of economics at George Mason University. Robin is the author of two fascinating books, The Age of Em and The Elephant in the Brain. He has worked with the Foresight Institute and DARPA, but perhaps his colleague at George Mason Bryan Caplan put it best: "When the typical economist tells me about his latest research, my standard reaction is 'Eh, maybe.' Then I forget about it. When Robin Hanson tells me about his latest research, my standard reaction is 'No way! Impossible!' Then I think about it for years."

About Robin Hanson

Robin Dale Hanson is an associate professor of economics at George Mason University and a research associate at the Future of Humanity Institute of Oxford University. He is known for his work on idea futures and markets, and he was involved in the creation of the Foresight Institute's Foresight Exchange and DARPA's FutureMAP project. He invented market scoring rules like LMSR (Logarithmic Market Scoring Rule) used by prediction markets such as Consensus Point (where Hanson is Chief Scientist), and has conducted research on signaling.

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

  • Start of the show.
    Meet Robin.
    Welcome to the show, Robin.
    Easier with wires instead of hands.
    Andrew from voice america.

  • Interview begins.
    Interview with Robin D Hanson, associate professor of economics..
    Interview begins with a quick bio.
    Concerns about the emergence of LLM/AI.

  • Why we’re scared of ai.
    The visceral reaction to AI.
    Sensible regulation for AI vs AI.
    Creating a financial asset based on global assets.
    Robots taking over the world.

  • Selling insurance to buy insurance.
    Selling insurance to people who buy the second asset.
    College professor's thoughts on weird questions.
    How Robin generates his weird questions.
    How to get more information about Robin.

  • What is the difference between the elephant in the room and the brain?
    The old economics joke about the kid visiting his economics professor.
    The elephant in the brain.
    Part one, the elephant in the room vs the brain.
    Part two, the introspective taboo.

  • Why do people consume so much medicine?
    People in developed world consume way too much medicine.
    The booboo theory.
    The hidden motives of other people.
    Signaling the deeper logic of unique behaviors.

  • Looking good to people around you.
    Selfish reasons for wanting to look good to others.
    The case against education.
    The story of the New Zealand Maori villager.
    Laughter and having fun.

  • Why did you laugh?
    Laughing is a way of checking that humans are still playing.
    Laughter is a play signal.
    How to get more information about robin.
    A word from 90 minds.

  • Corporal punishment vs. jail.
    Jail is expensive and corporal punishment is cheaper.
    The Age of Em.

  • A way to make smart robots.
    The age of AI and brain emulation.
    The future is different from us.
    The two contrasting ideas in the book.
    The new world of emulated humans.

  • Has AI progress sped up?
    Has AI progress sped up in the last eight years.
    Retirement of AI.
    Why AI will save the world. Marc Andreessen.
    The soul of enterprise podcast.

  • Worried about the worst case scenarios.
    People are constructing worst-case scenarios.
    The first message, nothing is happening right now.
    Main issue for most people is the otherness of ai.
    The us vs them thing.

  • Big player insiders asking for regulation.
    Big player insiders asking for regulation.
    Poverty insurance and basic income guarantee.
    Unconditional money vs unconditional money.

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 #442: Life After Capitalism — George Gilder

Ed and Ron were excited for their interview with George Gilder, author of the brand new book, Life After Capitalism: The Meaning of Wealth, the Future of the Economy, and the Time Theory of Money, published May 30, 2023. This was George’s fourth appearance on The Soul of Enterprise. He is Ron’s 42-year mentor, since his publication of Wealth & Poverty in 1981, which changed Ron’s life forever after. His latest book is a groundbreaking new theory of economics that, at last, explains capitalism as a knowledge-based system, not one revolving around incentives, greed, or materialism. It is truly groundbreaking, and you will want to hear what George has to say about how it will change our way of understanding economics, wealth, growth, technology, our standard of living, and the future of human flourishing.

About George Gilder

GEORGE GILDER, one of America’s leading economic and technological thinkers, is the author of many groundbreaking books, including Wealth and Poverty, Knowledge and Power, The Scandal of Money, and Life after Google. A founding fellow of the Discovery Institute, where he began his study of information theory, and an influential venture capitalist. He lives with his wife on his family farm in western Massachusetts.

Use these show notes to follow along with the audio. George’s quotes are in bold and they are GREAT.

Segment one:

  • Fun fact: Our show, The Soul of Enterprise, is named based on George Gilder’s book, The Spirit of Enterprise. https://www.amazon.com/Spirit-Enterprise-George-Gilder/dp/0786100532 

  • George’s new book, Life After Capitalism, is really a new economic theory based on information theory. It overturns the conventional wisdom based on economics. https://www.amazon.com/Life-after-Capitalism-George-Gilder/dp/1684512247 

  • “Wealth is knowledge” is a key principal in George Gilder’s new book, Life After Capitalism. With every doubling of total units sold costs tend to drop between 20-30%. That’s a well documented learning curve across all industries.

  • “Entrepreneurship is the process of creating new information adding to the tapestry of knowledge that comprises all wealth.” —George Gilder

  • “Money is what remains scarce when everything else grows abundant” —George Gilder

Segment two:

  • “Wealth is knowledge and the only way we can distribute wealth is to teach people.” —George Gilder

  • For people who create (entrepreneurs), George Gilder says today not he show, “The more possibilities [based on creation] the larger the portfolio of ideas.”

  • George blew our mind today with a discussion on Gödel's incompleteness theorems: Any logical system is necessarily dependent on axioms outside of the system that can’t be proven within the system. https://en.wikipedia.org/wiki/G%C3%B6del%27s_incompleteness_theorems

  • “There is no necessary connection between symbols and objects. You need to interpret them. Reality is triadic.” —George Gilder

Segment three:

  • George Gilder was really delighted to read the book “The Box” which tells the history of containerization of all of the ports and trade in the world. https://www.amazon.com/Box-Shipping-Container-Smaller-Economy/dp/0691136408

  • “The transmission of anything is essentially an information problem rather than a material problem.” —George Gilder

  • Packet shipping (physical goods) and packet switching (data) are effectively the same thing when George Gilder thinks about it. It’s the transfer of discrete, containerized items or data.

  • Graphene is a key element discovery that will drive future innovation. It’s effectively a single layer of carbon atoms that is 200x stronger than steel, as flexible as rubber, and 1000x more conductive as copper.  

Segment four:

  • Related to Graphene, George Gilder mentioned a company called Universal Matter. You can check them out here https://www.universalmatter.com/ 

  • “Money needs to be a measuring stick and not a magic wand.” —George Gilder

  • “Bitcoin is a speculative asset rather than a currency. With a HODL strategy (Hold On for Dear Life)” —George Gilder

  • The four pillars of George GIlder’s new book, Life After Capitalism, are: Wealth is knowledge, Growth is learning, Information is surprise, Money is time. Check it out here https://www.amazon.com/Life-after-Capitalism-George-Gilder/dp/1684512247 

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 #441: Grab Bag Galore

We announced at the end of last week that we planned to talk about Peter Block's new book Confronting Our Freedom, however, this week we learned that Peter has agreed to join us in about a month. YES! Because of this good news we pivoted to a topical show. There are a few newsworthy items, including a show review that we shared with you.

Use these show notes to follow along with the audio:

Segment one:

  • Peter Block is back on the show on June 23rd to talk about his book and “never has the soul of enterprise been in so much jeopardy” to use Block’s words. Plus, we have George Gilder next week! Great shows ahead.

  • Was the billable hour destroyed over the last 10 years and it is making a comeback? That was topic number 1 for our grab bag galore today.

  • Are there any businesses where the billable hour makes sense? The airline industry with respect to engines. The time in the air is the only time that is billed. Incentives are aligned. But notice this is on an inanimate object.

  • Does anybody remember when AOL billed by the hour? And then went to a flat rate model? http://www.famousdaily.com/history/aol-switches-to-flat-monthly-rate.html 

  • “If you negotiate on cost plus pricing, you’ve already lost.” —Rory Sutherland

Segment two:

Segment three:

  • Sometimes forgotten, Electronic Health Records — when initially mandated — imposed enormous costs on smaller offices.

  • Out of network doctors at your in network hospital? If you are in the United States, this is a real concern and has HAPPENED to Ed before.

  • [Sarcasm ahead as they received extra shoutouts on the show today] I don’t we say thank you enough to 90Minds, the sponsor of our Patreon channel at Patreon.com/TSOE — If you need a mind, get one at 90Minds.com

Segment four:

  • We received a great review from a listener AND guest, Brian Terrell @brian_terrell. Ron and Ed talked about the review live on the show today. 

  • Amazon and AWS is a great example of a spinout entity. Why dilute the Amazon consumer brand and confuse the situation with AWS? Ron and Ed talked about this in relation to CPA firms and their bookkeeping work in segment four of today’s show.

  • “Advisory services is an oxymoron. Advice is not a service.” —Ed Kless

  • Exciting news! Ron Baker, Paul Dunn, and Ed Kless have launched the Time’s Up Club. Audio chapter summaries of the book, Time’s Up, are available for FREE in the free forever plan. Just sign up at TimesUpClub.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 #440: Second interview with Dan Mitchell

Ron and Ed last spoke to Dan Mitchell in May of 2020 when Covid was in full swing. For this show, we get an update on the results of the C-19 spending policies and bring the conversation to current tax policies and proposals. Dan opines on his blog International Liberty on a far range of subjects. This was a fascinating conversation.

A Bit More About Dan Mitchell…

Daniel J. Mitchell is a cofounder of the Center for Freedom and Prosperity and the Center for Freedom and Prosperity Foundation. He is one of the nations leading experts on tax reform and supplyside tax policy. In addition to tax policy, Dr. Mitchell is a trenchant observer of economic developments and an expert on Social Security privatization particularly the fiscal policy impact of reform and what the US can learn from other nations that have created personal retirement accounts. Dr. Mitchell’s byline can be found in such national publications as the Wall Street Journal, New York Times, and Investors Business Daily. He holds a Ph.D. in Economics from George Mason University and masters and bachelors degrees in economics from the University of Georgia. Mitchell was a senior fellow with the Cato Institute and The Heritage Foundation, and an economist for Senator Bob Packwood and the Senate Finance Committee.

Use these show notes to follow along with the audio:

Segment one:

  • Should Congress raise the debt ceiling? That was Ron’s FIRST question for Dan today on the show. Just moments prior, government negotiations broke down so this is already turning out to be a great show.

  • “Our number one problem is not red ink. The most important thing to understand is that deficits and debt are the symptoms of the real problem which is too much government spending.” —Dan Mitchell

  • Dan talked about the Swiss “Debt Brake” on the show today. Here is an article from Cato with his byline about the topic. https://www.cato.org/commentary/how-swiss-debt-brake-tamed-government 

  • There is a balanced budget criteria in the EU that is focused on deficits and debt. Does that stop the EU from having big, bloated, high tax governments? No. The spirit behind a balanced budget amendment is admirable but does not work in practice.

Segment two:

Segment three:

  • Hey Dan, will that extra $80M help the IRS? “It will make the IRS more effective at squeezing money out of small businesses and individuals.”

  • Dan Mitchell mentioned this on the show today. The @TaxFoundation has great research on the compliance burden of overall income tax. More here https://taxfoundation.org/ 

  • “The tax gap almost certainly is more likely to be more prevalent in cash based businesses.” —Dan Mitchell

Segment four:

Here is Dan’s Eleventh Theorem of Government:

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 #439: Interview with Ian Vásquez

Ron and Ed welcomed Cato Institute's vice president for international studies and director of its Center for Global Liberty and Prosperity, Ian Vasquez. Among other topics, they discussed the latest Human Freedom Index, of which Ian is a co-author. For those of you unfamiliar the Human Freedom Index presents the state of human freedom in the world based on a broad measure that encompasses personal, civil, and economic freedom. Human freedom is a social concept that recognizes the dignity of individuals and is defined here as negative liberty or the absence of coercive constraint. Because freedom is inherently valuable and plays a role in human progress, it is worth measuring carefully. The Human Freedom Index is a resource that can help to more objectively observe relationships between freedom and other social and economic phenomena, as well as the ways in which the various dimensions of freedom interact with one another.

A Bit More About Ian Vásquez…

Ian Vásquez is vice president for international studies at the Cato Institute and director of its Center for Global Liberty and Prosperity. He was a weekly columnist at El Comercio (Peru) from 2014 to 2020, and his articles have appeared in newspapers throughout the United States and Latin America. Vásquez has appeared on CNBC, NBC, C-SPAN, CNN, Telemundo, Univisión, and Canadian Television, as well as NPR and Voice of America, discussing foreign policy and development issues. He received his bachelor’s degree from Northwestern University and his master’s degree from the School of Advanced International Studies at Johns Hopkins University. He is the coauthor of the Human Freedom Index, editor of Global Fortune: The Stumble and Rise of World Capitalism, and coeditor of Perpetuating Poverty: The World Bank, the IMF and the Developing World. He has testified numerous times in the U.S. Congress on economic development issues. Vásquez has been a term member of the Council on Foreign Relations and is a member of the Mont Pèlerin Society.

Use these show notes to follow along with the audio:

Segment one:

  • Now in the 8th edition, the Human Freedom Index is the only global measurement of economic, personal, and civil liberties of its kind. More here: https://www.cato.org/search/category/human-freedom-index

  • How do you define freedom in the with respect to the Human Freedom Index? The goal of the Cato team is a quantifiable measurement of freedom. In this case, freedom is defined as the absence of coercive constraint. https://www.cato.org/search/category/human-freedom-index 

  • 94% of the world’s population saw a decline in freedom based on the 2023 Human Freedom Index. COVID-19 was a significant factor in this measurement.

  • The United States dropped 7 places to number 23 in the most recent Human Freedom Index. It’s hard to tease out the exact reasons given how fresh the data is. As an example, freedom of movement suffered greatly as an example.

Segment two:

  • The Human Freedom Index is co-published with Cato and their friends at the Fraser Institute. More here https://www.cato.org/search/category/human-freedom-index 

  • As an example, Singapore has a high economic freedom ranking but the personal freedom score is a bit lower. Switzerland and New Zealand are number 1 and number 2. They rank high both on personal and economic freedom.

  • 13% of the world’s population lives in the top quartile of freedom. 40%, the bottom quartile. 75% of the world’s population lives in the bottom half. This is really unequal distribution of freedom as measured by the Human Freedom Index report.

  • It is much more important to look at the inequality of freedom as opposed to the inequality of income or wealth distribution. Freedom is what Ian the the Cato team find to be more important when trying to gauge inequality across the world. 

Segment three:

  • “Free speech recession” is a phrase that Ian has used a few times during the show today to describe the ever-receding rights of the human population across the globe.

  • The story of Hong Kong is a story of freedom and triumph. In the 19th century it was one of the poorest regions in the world. Through trade and economic freedom it became one of the most free (Human Freedom Index) places in the world. Of course, that has changed.

  • The control of the economy is the control of life itself.

  • The story of one of the great economic freedom successes can be found in Chile. They moved in the direction of a market economy. So why, in 2018, did they experience riots/violence and vote in a far left President who called for a new constitution? Ian addressed this today on the show.

Segment four:

  • Ian discussed Ukraine during segment four of the show today. He also penned “What I Saw in Kyiv in 2014” in February 2023 at this link: https://www.cato.org/blog/what-i-saw-kyiv-2014 

  • The US has not come up with a good set of policies in dealing with the great challenge of international relations with China. “There are bad answers and less bad answers.” 

  • Ron asked Ian about Cuba today based on this article, “Cuba’s Freedom Song” https://www.cato.org/blog/cubas-freedom-song

  • “There are no communists in Cuba. Nobody believes in the system.” —Ian Vasquez

  • A big THANK YOU to Ian Vasquez for joining us today. He is the co-author of the Human Freedom Index. More at this link https://www.cato.org/search/category/human-freedom-index 

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 #438: Fifth interview with Joe Woodard

Ron and Ed welcome back Joe Woodard, CEO of Woodard and host of the Scaling New Heights Conference at which Ron and Ed will be delivering keynotes and sessions. We chat about the conference, artificial intelligence, and other issues facing the accounting profession.

A Bit More About Joe Woodard…

As an author, consultant, business coach, and national speaker, Joe has trained over 100,000 accounting and business professionals in areas of practice development, changing technology trends, strategic consulting, and how to maximize the use of accounting software in their practices.In 2012, 2014, 2015, 2016, and 2017, 2018 Joe was recognized by Accounting Today as one of the Top 100 Influential People within the accounting profession. In 2008, Joe was recognized by CPA Practice Advisor as one of the Top 40 Up and Coming Thought Leaders under the age of 40.Joe regularly publishes articles for Intuit publications and for Insightful Accountant, and Joe has been featured repeatedly in Accounting Today and AccountingWEB in both articles and in video interviews. Joe is the CEO of Woodard Events, LLC which includes education, coaching, resources, and a community for small business advisors and small business owners within the accounting industry.

Use these show notes to follow along with the audio:

Segment one:

  • Paul Dunn (co-author of Time’s Up!) helped Joe Woodard craft a better vision statement: Every vision statement should have an implied but known…”so that”. 

  • For example, the Woodard vision statement is to transform business through business advisors…”so that”? So that business owners can have more intention and capacity to give to their family or other important people in their life.

  • Does Joe embrace AI as an opportunity or is he scared of it? He’s not scared but he is nervous from an economic perspective. Can we pivot fast enough so that authors, storytellers, and artists can find a new way to bring the human touch to their work.

  • Summarizing Joe’s take on AI: An intelligence - artificial or not - has the ability to draw conclusions and take action. When it can improve upon itself, we can’t even predict what it is capable of doing.

  • “Data and knowledge are about the past. They say nothing about the future.” —Ron Baker

  • Joe used the word prophetic on the show today and then dropped this one on us! “Wisdom is the fusion of knowledge and soul with a mix of emotion.” —Joe Woodard

Segment two:

  • Everything AI came full circle today on the show. Joe suggested that in order to keep AI from becoming too powerful, the “gods” should probably give it different languages so that it is difficult to communicate amongst themselves.

  • Ed summarized a great conversation from Russ Roberts and his guests on a recent show: “AI doesn’t know that it knows. Humans don’t know why we know.”

  • Joe’s experience with the Metaverse is one in which barriers around age, nationality, and ethnicity are broken down.

  • Snowcrash and the MUD from Dungeons and Dragons are two of the earliest known references to what we call the Metaverse today. If you haven’t read Snowcrash by Neil Stephenson, please do :) 

  • The history of the Metaverse is inseparable from social media which is why Facebook did what they did in renaming and refocusing the organization as Meta.

Segment three:

  • You don’t go to the Metaverse to get your job done. You go to the Metaverse to interact. It breaks down global barriers and language barriers.

  • Why haven’t we seen the Metaverse become an economic powerhouse yet? We haven’t seen the aggregation of economies. We haven’t seen further adoption of blockchain technologies. YET.\

  • Joe mentioned Metcalfe’s Law on the show today. If you are not familiar, Metcalfe's law states that the financial value or impact of a telecommunications network is proportional to the square of the number of connected users of the system.

  • Related to adoption of the Metaverse, there is also a technological barrier right now. The resolution on headsets is still a bit low and that can cause a feeling of nausea in some users.

  • Did you know that Accenture purchased 60,000 headsets for VR training? Check out this article https://www.consultancy.uk/news/29463/accenture-buys-60000-oculus-headsets-for-vr-training 

Segment four:

  • It’s a little hyperbolic but Joe is known to say, “Give away the compliance to get the advisory.”

  • The nature of tier 1 is record keeping and the product is very responsive. The nature of tier 2 is real time, operational, and interpretive in a Controller level. In tier 3, you are a business coach.

  • Joe is really excited about Scaling New Heights this year. Leverage the environment around you like a hawk leverages its environment and SOAR. 

  • A big THANK YOU to Joe Woodard for joining us today. If you have not recently, check out Woodard.com to see what his team is up to.

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 #437: Fourth interview with Doug Sleeter

Doug Sleeter was a well-known entrepreneur and thought leader in the accounting industry. He was the founder and former CEO of The Sleeter Group, a company that provided training, consulting, and research services to accounting professionals.

“Sadly, Doug Sleeter passed away in November 2019.” - ChatGPT 3.5, March 2023

Yup, ChatGPT says Doug Is Dead. The good news, he is very much alive and has a bone to pick with ChatGPT. This one is personal.

A Bit More About Doug Sleeter…

Doug Sleeter is the founder and former CEO of The Sleeter Group, an international network of accounting software consultants, and the former producer of SleeterCon, an annual conference for accounting professionals. As a CPA firm veteran and former Apple Computer Evangelist, he melded his two great passions accounting and technology to guide developers in the innovation of new products and to educate and lead accounting professionals who serve small businesses. He is currently focusing on digital currencies and blockchain technology. He was inducted into The CPA Practice Advisor Hall of Fame in the accounting profession, and named to Accounting Todays Top 100 Most Influential People in Accounting, 20082015. Doug attended the University of California Santa Cruz and Santa Clara University, holds a Bachelor of Arts degree in Computer Information Systems, and lives in Pleasanton, CA.

Use these show notes to follow along with the audio:

Segment one:

  • The AICPA was playing around with this new “AI thing” when they asked it, “Who is Doug Sleeter?” and discovered that ChatGPT was hallucinating (and had declared him dead).

  • The term, hallucination, is commonly used to describe incorrect information supplied by an AI tool such as ChatGPT.

  • “Hasn’t the internet always thrown a bunch of crap at us, including humans?” —Ron Baker on the hallucinations of ChatGPT

  • If you have a little bit of data wrong, that’s not a problem. In aggregate, lots of small issues become a bigger one. Then AI enters the stage and we are struggling to correct its hallucinations.

  • “You have to have some basic human discernment in order to create a prompt for [ChatGPT].” —Ed Kless

Segment two:

  • “We talked in the last segment about big bad data. These hallucinations from ChatGPT are creating more data that someone is going to record on a ledger somewhere. How can this be good?” —Doug Sleeter

  • It can pass the bar but ChatGPT has a problem with accounting tests. “ChatGPT is still no match for humans when it comes to accounting” https://www.eurekalert.org/news-releases/986867 

  • The creation of an AI generated deepfake is not the problem but what about the reaction to it. Just as Doug had a reaction to being proclaimed deceased, our government is having a reaction to AI in general as well.

  • “AI apocalypticism is thinly veiled political fund-raising pitch” https://www.nationalreview.com/corner/ai-apocalypticism-is-a-thinly-veiled-fund-raising-pitch/ 

Segment three:

  • The paper clip problem. What is it and why would AI be hell bent on destroying us to make more paperclips? https://cepr.org/voxeu/columns/ai-and-paperclip-problem 

  • Do you know about Isaac Asimov’s 3 laws of robotics? Written in 1941 in his short story runaround https://en.wikipedia.org/wiki/Runaround_(story)#:~:text=The%20plot%20revolves%20around%20the,conflict%20with%20the%20First%20Law.  

  • We swerved into the philosophy lane today on the show: Human judgement, morality, and creativity were all significant factors when Sully landed his plane in the Hudson River. How would an AI system have acted?

  • On AI: “The contextual piece is critical and it is what makes us human.” —Doug Sleeter

Segment four:

  • This is GENIUS. Doug Sleeter has the ultimate test for AI. It’s better than the Turing test for sure. “Would my dog befriend an AI and consider it to be its master?”

  • “We do overestimate the impact of technology in the short term and overestimate it in the long term,” as summarized by Ron on today’s show.

  • A big THANK YOU to Doug Sleeter for joining us today. To all who were concerned about ChatGPT’s designation of him as deceased, do not fret. He is very much alive and ready to set the ChatGPT record straight.

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.