Steve

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Tue May 17, 2022

  • Core Enterprise Module Staff
  • Scaling worldwide - money pushes down to employees. Example shown where other countries - financing is based only on fixed income.
  • Not a housing company - but a manufacturing. Or democracy
  • Your dream home is american dream - but not the same in Africa
  • Entrepreneurial financial independence
  • UK- fixed income is a big point.
  • I want to find the right people - not $, but quality.
    • Ex - $18/hr vs $52k/year.
    • But for a cook - you need to be a restaurant. Taxes attributed to restaurant. That gets us to cafeteria realm. Or catering. This tactically will drive it.
  • Reality for growth: COCA. Cost of acquisition. PR effort.

Tue May 10, 2022

Wed May 4, 2022

Steve,

Good session yesterday - shook me up on some preconceptions. 
Here'e a question: the initial [[Core Enterprise Module]] was: (lines numbered so we can talk specifics about assumptions in each):

  1. 6 months until apprentice gets trained. Program cost - $16k.
  2. Then they start getting paid, earning $50/hr for 20 hours per week average, the rest is continuing studies.
  3. But what you said yesterday - the profile of the 'tech school person' was 'I need to get paid', not an 'engineer/designer/idealist/generalist' like a person who would go to 'college' or engineering school. 
  4. Thus, how is the same profile of the 'tech school person' going to fit in the R&D role?
  5. Note the R&D role is the 'efficient integrated design' according to 'OSE Specifications' - a list of about 70 design principles (you learn about 7 of these in 'college') - which degenerate to the type of design that we do. Ie, take the Seed Eco-Home, it will follow all these principles - and explains why I can't get anyone to design it because maybe 1% of the design crowd would understand 14 of these, and we're lucky if one in a million followed all 70. 
  6. This 'one in a million dilemma' is what I think we are trying to solve for.
  7. I don't think we are really asking 'how do we solve housing' at this time. More specifically, I think we are really asking 'how do we train the people who solve housing' - by providing the extreme skill set necessary to solve any problem including housing.
  8. This role of R&D is what really matters - and results in transformative enterprise, such as 'solving housing', 'solving energy', 'solving poverty', solving governance, solving corruption, etc.
  9. R&D gets us the technical knowhow and product ecosystem integration that allows us to solve any issue. From multiple angle: products proper (technologies), related enterprise models, related institutions, etc.
  10. So I'm stuck with how the House Building Redneck will fill this role - you appear to be convinced that this is not the same person as the 'engineer/designer/idealist/generalist' who is interested in the larger 'world saving project'
  11. If a program for the 'engineer/designer/idealist/generalist' is a program that we do after the first year, etc - then what is the first cohort of 24 doing after they are trained in 6 months? 
  12. I could see one solution: they build houses full time (and make more money) - but where is the R&D function coming from?
  13. Possible solution to the R&D function: we simply use the $1-2M net revenue to hire the designers.
  14. However, the last point is incongruent with point 6 - we can't hire anyone who is qualified.
  15. If we do hire, we have to re-educate the person from the bullshite education they already received. They know too much and are not open to new ideas.
  16. Thus we choose the 'create your own talent' inherent to the overall concept - so that people can follow OSE Spec and be mission-aligned (actually Mission Command from the military is quite close to how we operate)
  17. So to address point 13 - if we can't hire - we can hire only in a limited way (such as highly qualified subject matter expert (SME) curriculum developers)
  18. So who does the long and gory due diligence of R&D?
  19. One solution is _some_ of our apprentices do choose the 'continuing education' route and continue to learn the deeper design skills - and how to think and how to be enterprising.
  20. So - we build an army of builders, and from the resulting cash flow - we build more of a  'engineer/designer/idealist/generalist' University curriculum at later phases, not expecting most of the initial cohort to be on a 'continuing education' track?
  21. That could work, but it doesn't prevent the generic case of resentment and fascism that starts to build up when people stop learning. 
  22. So I think we should consider the fascist tendencies resulting from stopping one's learning. The intent of our program was to keep people learning - on all fronts - a direct antidote to fascism, bluntly speaking.
  23. I just want to be careful about 'structural creation of autocratic thinking' that can result from jobs which are less than fully empowering to people.
  24. For this reason - I thought we could 'enforce continuing learning' by the structure of our program. Of course we would have to make our program completely inspiring - it would not be a pain. We would subvert peoples' resistance to learning by making sure that the art of possibility always inspires
  25. To sum up - I would like to gain clarity on how we can assure continuous learning due to its implications on liberty and prosperity.

Marcin

Steve's Response. Also see Core Enterprise Module.

Tue May 3, 2022

Notes

  • Reframe questions - Frame opportunities by asking: What is the problem I'm solving? Who am I competing with? What are current ways of meeting? What value am I providing?
  • $55B/year on continuing education market. Improving life or career. Not going to college.
    • How does this market find clients? How do they serve them?
    • Understand competition, promise, value proposition.
  • Not University initially. It would be competing with trade schools.
  • University - physical location.
  • Fascinating - the trade school will start the revolution. The common folk. But that's how it always happened in history.

Mon May 2, 2022

  • http://www.dtrtapparel.com/operation-in-ghana
  • 3100 workers - machinery. Sewing machines.
  • 25-30 people sewing - per product
  • Sewing - warehouse racks
  • Racks for fabric
  • Laser cutters, auto spreading machines
  • 1 forklift
  • Expanding to more sewing capacity
  • Due diligence with IFC - for a fabric mill. Actual knitting, circular knit, dry scouring, stenter. Germany or Italy.
  • New building - by who? Locals. Developer has land.
  • Conveyor belts - for transporting
  • January 24 - ready to occupy - for the building.
  • Euro development. ESG - Environment, Social, Governance. Improve jobs, reduce terrorism.
  • 18000 sq meters, 2 story.
  • IFC - private bank of the world bank
  • For skip - Solve Housing
  • Energy
  • $6M cost for building without land. 4.4 acres.
  • Every $3 of debt gets you $1 of free money.
  • 2-3 years working at DTRT in day to day. Wants to make DTRT brand.
  • 2-3 years from now it's exist.
  • Met Steve in 1993, his CPA is Skip's oldest friend.

Tue May 3, 2022

  • Is the model of students doing cutting edge R&D realistic? Starting 18 yo.
  • Are specific pre-requisite skills required?
  • What time is required to train people? Depends on Rapid Learning Infrastructure success.

Tue Apr 26, 2022

  • Nathan Fletcher - 4th district SD [1]
  • Strategic approach: 6 week delay to plan check. 2 week delay to plans; will be available with full submission. 2 Month Delay to ground break.
  • From finished build - 2 months. 1-1-2 houses? Prove ergonimics, prove replicability of sales.
    • What key elements are we proving? Build, sale, desirability? Logistics/process. Process for delivering seems to be the key.
  • First build: Aug 1. Verifies first wild case of build in zoned jurisdictions and predictable inspection schedule. Challenge: crew
  • Second build: Sep 15. Verifies replicability - automation of management process of a distributed model. Challenge: crew
  • Third build - Oct 1 - 2 houses, 10 days - verifies single crew doing both. - Verifies logistics of multiple builds.
  • Million Dollar funding, and Applications Open for spring 2023.

Tue Apr 19, 2022

  • I don't want to disappoint anyone involved.

Tue Apr 5, 2022

  • SEH_Core_Enterprise_Module#Working_Doc - Core Revenue Model working doc
  • 20% is a minimum
  • Average price of comparable houses sold, and time on market.
  • $200-300k, 45 days or less on market.
  • [2]
  • House - [3]
  • House - [4]
  • We looked at Days on Market - and Number of Houses Sold at [5] - and for $200-300k range (though there may be some in $400k neighborhoods) - we took ones quick to sell (45 and less on market). Then we looked at Houses Sold on Zillow. It is Houses Sold that matters - new or old does not matter. But, you can select for New Construction under More (at the bottom) in the search boxes.
  • St. Robert [6]
  • More - [7]
  • Agent commission - $10k - [8]
  • 1000 SF - [9]
  • 1200 sf - [10]

Mar 29, 2022

4 elements of owning a country, like Russia to Ukraine

  • Land barrier
  • Ports
  • Resources - lumber, etc
  • Bargaining resource

More:

  • Entitlements are high - ex free healthcare. If you make it efficient - people will afford it.
  • Definitely something for movign the clothing business forward. Bidding on Ethiopian garment industry. Open Source equipment and facilities should be open.
  • Rebar truss, ozone system
  • 3000 employees in Africa, second largest employer in Ghana after gummit
  • Ukraine - it's about tax income, but also ports: big revenue from people paying to use ports, and resources: revenue.
  • I can loan you money etc...what if we don't kick ass - but give you a loan, give you bunch of planes etc. Arm every
  • $7T to go solar.
    • But supply chain is an issue. Case in point of McDonalds
    • But - must talk about structural challenge - of keeping people employed.
    • Rather than 2M entrepreneurs - vs 20,000 entrepreneurs in megafactories
  • Ports should be open source. $100s of B of revenue from ports.
  • $ lost per day when Suez was lost - $9B per day. Operational costs are just dredging the canal?

Mar 22, 2022

  • SEH Core Enterprise Module
  • Reactive vs a business that plans - strategic planning productivity
  • For financial independence - not all time must be spent at work - must have time to learn and have bigger picture. How tech and market is evolving
  • Financial indep is a byproduct of planning , learning, acting - not only working. We create a structure for that. We create a stucture where you don't spend time walking your dog - but instead spend that time learning. Planning and learning must be a part of it - that is a freedom. But what about spending time with family and walking your dog?
    • Steve perceives a thoughtful way for continuing learning to provide sustainability - the system grows with time. MJ adds - this is unique because we collaborate at the same time.
    • We target entrepreneurs - people who scale into the future. If we create a structure for creativity which is not only fostered, but expected.
    • So what about defectors? We create an ecosystem on which their thriving depends. If they defect - it will be lifestyle based. They defect not because they don't get value.
    • Be connected to thousands of collaborators. Take it to the next level: people say we already collaborate: ex, Ukraine - but - the deepest level is collaborative product development.
    • You want:
      • lifelong learning promis, tech advances, realtime access to information, design enhancements, cost improvements
  • Learning is not fostered - it's expected.
  • Creating an ecosystem that their success depends on
  • Don't presuppose that defection is not good
  • Yes, to meaning? Last 8 years - people are good at pointing out problems. People are not pointing to solutions. The point is - we can address this. We cannot be just pointing problems - we have a solution: think, cooperate, collaborate, design - solve problems.
    • No one person knows how to solve a problem, but with 10s of thousands of others, we get serious.

For financing:

  • Not zero interest loan, but other. Such as investment, or business line of credit.
  • Solution for financing - example of a San Diego company - that makes a bridge to pay people, minor league baseball. 20% return. Only a few people need to 'make it.'
    • Scholarship for percentage of future earning.
  • Need to find a way to scholarship people. For profit opportunity.
  • 4-6% construction loans. LOC - pay interest on only what you take out.
  • Line of Credit. Business line of credit. You pay only for what is out of the bank.
  • Must expect 6 month to pass exam.
  • Upon scaling - will need line of credit.

Challenge:

  • How do you consistently deliver 24 houses per year
  • 24 people showing up - 24 students
  • 6 months they pay - we pay them at 6 months
  • I am so good at training that we expect to pass
  • $50/hr, 48k per year.

Mar 15, 2022

  • Austria - radiation pill taken to school
  • France - fear-based
  • Germany- national self-interest
  • UK - marginally bigger than covid in terms of news.
  • Europe shows graphic pictures of people getting ripped up.

Mar 1, 2022

  • The 4 Agreements - Book. Optimistic view. + Fertile Ground.
  • Scarcity, collaboration, transparency - steve learned not to judge outcomes
    • Yes, but steve taught me not to judge outcomes
  • Negotiation + statesmanship -
  • Fertile ground + power of words
  • EPA is getting castrated
  • Opportunity for OSE - renewable energy can be solved in one week just like ukraine
  • Happening in Europe is a big part of the story
  • But how is Ukraine different than Iraq et al?
  • Different people have different opinions of what ethical is. Economy of abundance cannot be disputed, though.
  • "Fundamentally creative approach" - "first principles approach"
  • Addressing urban deserts - Steven mentions the urban gardening in LA for food deserts
  • Dope Dye - dying without water
  • Do the Right Thing - in Ghana - [11]. Check it out - http://www.dtrtapparel.com/operation-in-ghana
    • Raising the status of living in Ghana, customers didn't care!
    • 28-50M revenue in 2 years. $100M
  • Point - is timing. They had their old way of doing things.
  • AGOA - tax free
  • Feeding people, educating people as well.
  • Dry Dye - Dope dye - coloring polyester

Feb 22, 2022

  • How does the work of OSE address war, like is happening now?
  • Older than us by a lot?
  • Sanctions will be terrible for the Russian people.
  • Ex Libya - going there without any transparency?
  • Then invasion of Kuwait. Afghanistan. 911. World is shifted.
  • 25 consecutive years of wars now.
  • Russia is grabbing turf for purely financial, economic- labor, infrastructure, economics.
  • Luke - entrepreneurial approach - towards freedom.
  • Luke - huge vision to make approachable.
  • 30-50% of corporate revenue goes to pay including C-suite.
  • Audience - 2 books - the illustrated guide to OSE Doctrine + the fat comprehensive open source bible.
  • OSE paradigm changes what is monetized. Currency is time for money. In the new paradigm - the output is valued. If you are more efficient, you're better. In current system, efficiency is not valued. Current model - 2/3 of employees are paid for inefficiency.
  • Set up a call each week - 2 half hour slots.

Feb 8, 2022

  • No fear of quitting since Great Resignation
  • Question and answer for Book Chapters of OSE doctrine?
  • What makes people stay? Steve had a tremendous record of retention.
    • Answer: all are about how much better it is to be working with others. This is a subtle way of saying 'collaboration'.
  • Collaborative design - institutionalized - take industry to a new level of performance

Feb 1, 2022

  • We start with Why - how much do we do the how and what?
    • How is a little bit in there. There is a change in the belief system. A little bit is how - the collaboration.
  • Freedom and independence.
  • Send a PDF - like book from Ben Zander. He also has a dvd and series.
  • Collaborative Design - and transparency - and open source. How it can be applied to solving pressing world issues. How fascinating!
  • Art of Possibility - throws away a limitation.
  • Hierarchy for effective decision making?
  • How do we orchestrate taking on different world problems? Structure for solving natural resources is same structure as solving housing
  • Build doctrine with careful word choice - so action and behavior mimics word choice - and appeals to people who currently are questioning about where they have given their independence away, where not giving away independence is low hanging fruit.
  • so we pitch it as a tribe of mentors
  • We all share a doctrine

  • Kids aren't getting mentored or nutured or coached. So we want to add the nurture and mentorship.
  • Promise - can't shit over what they do today. Don't say what we aren't
  • Crawl walk run -
  • Focus on saying what you can do with us
  • Focus on the independence.
  • Can't create a structure that creates dependence.
  • We advocate financial independence. We set up structures for this freedom.
  • This is for college students.

  • Freedom - is granted. Independence is in my control.
  • Independence is in my control
  • Breathing life into OSE will be real once I bring in the doctrine of WHY
  • Body of belief under why.
  • Why - last stab at it with the fall apprenticeship
  • What the Mein Kampf
  • People come here for MJ brilliance, not for the Why. Focus on the why.
  • People are not gravitating because of doctrine, but because of OSE
  • Before the book - give me the abstract. Simon Sinek - the Why
  • I need to show what collaborative design means to me
  • It's a superpower to apply - and then I can say what the applications are
  • Can apply to any problem of choice
  • We're solving for housing.
  • But is anyone is coming in to 'solve housing' ? Not really. We lean into
  • Security that comes with dependence?
  • Boy Who Harnessed the Wind - independence to find water
  • We want to find people who are concerned about their dependence. Insecurity, Crap Jobs, job loss to foreign. Just wanna know I can take care of my family.
  • Irony - we can get there through collaborative design. It's not upon you only. You all benefit.
  • Nobody wants to be the one to take the first bite of the apple from the garden fo eden.
  • Compared to a guy working at Ford. Nice, but never retires. There's still a dependence on Ford. Reframe that OSE is not a replacement for Ford - but an augmentation.
  • So we really focus on the AND - you can do both.
  • OUr strategic approach is to say do a little OSE. We believe in independence - so they choose what makes them comfortable.

Tue Jan 11, 2022

  • Kits and pitch deck to Habitat - we sell X kits in 2022
  • Kit + training - good for Habitat. Bad idea to ship kits to Africa.
    • May modify designs based on partnership - after feedback from one.
  • Expectations - set them for a team, not individuals
  • Key to not building dependence - provide transferable skills
  • Understand how much another person values something - key challenge for leadership
  • We provide value even if people leave.
  • Team-based objectives - powerful motivator
  • Challenge of leadership - valuing things equally on each side. Because expectations of repayment occur. Yes - when people for example feel like they are serving me.
  • Transparency of Why we do something must be constant - my blog, etc. Constant commentary. Guest posts from others are invite as an organizational study.
  • Steve has process for 'compensation conversation' - up or down - and others. Even with dumb free lunch... Process for change is inclusive. Otherwise fear and distrust.
  • Change of mission from original with input from people is ok.
  • Concurrent - pitch - and building homes.
  • Leader - sets expectations. Is that a unique part of leadership? People do not set their own expectations - that's a rule of an organization if the goal is greater and team-based. People can set their own expectations, within expectations set by org in the first place.
  • Structure - They have to collaborate to a goal, can't do it themselves. They police themselves for goals. So Leader's Expectation can be broader, more impersonal. Then they have to collaborate and police each other to meet goals.

Tue Jan 4, 2022

  • Average salary for a house contractor, electrician, welder, carpenter, foreman, construction manager, etc. Who is the target I want to go after and how much do they need to be paid to stick around? Or, natural builders? Design-build firms? Hire companies that specialize in construction management?
  • Did you run into evil people (sabotage, envy, etc) and what did you do with them? What safeguards do you have in place? Give them an A, or create structure that allows you to behave?
  • Piece work vs hourly - piece work is per product
  • Acquisition as a potential route for OSE. There is a wide range of options from OSE - partntership - acquisition of an existing company that could be viable. For example - Washington state people - we partner with them to build.

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