Archive for the ‘Uncategorized’ Category

Thinking in Reverse

Saturday, March 8th, 2014

I find myself thinking in reverse more often than I am thinking forward. What is “thinking in reverse”? I believe thinking in reverse is seeing the end goal, and then trace from the end-goal to the present moment. Things like, I want to make x dollars a year in salary, I want to help this company make x dollars in revenue, I need to get these pieces into this position in order to solve this puzzle. If I want to be have this sort of lifestyle and live in this location in 10 year, what are the things I’d have to do, where do I have to be, who do I need to know? So on…

I wonder if this is part of planning, or if I merely came to a self-realization that everyone pretty much thinks this way.

The concept of “budgeting” is a clear example of thinking in reverse. How much money can I spend? What can I spend this money on? A forward thinking approach might be, I’ve buying, and bought x items, and then checking the balance to see how little money is left in your bank account and make a decision from there.

I like solving puzzles from two ends, the beginning, and the end. What does the end have to look like, what does it look like in the beginning? Then I meet everything somewhere in the middle, and I have my optimum path. This technique works really well for me in any type of pathing sort of puzzle (think mazes). Come to think of it, even Soduku puzzle in a way tell you how things MUST be before you even start.

Makes you wonder what things you really thing forward on, and if you spend all your time thinking reverse, what type of life are you leading, what does it mean, is it a good or bad thing?

Wait Constraints

Thursday, March 6th, 2014

I was pondering about how to speed up project deliveries, and I realize that often times, no matter how much knowledge I have on the topic, it will still take a fixed amount of time, because certain processes simply involve “waiting”. For example, if you need to restart a server, you need to deploy some code, you need to wait for something to compile, and programs to simply start.

The way to unlimit yourself is roughly let someone else do the waiting, and focus your energy on other things. This constraint is an important one, and if you can bypass this constraint, then accomplish a large project in a much smaller time. It’ll also bring into question what you’re capable of, and what your role in the project truly is.


Thursday, December 12th, 2013

There are two types of management, managing for a field you’re familiar with, and managing for a field you’re not.

In the case of managing for a field you’re familiar with, you’re going to leverage a lot of your experience and expertise to make decisions.

In the case of managing for a field you’re not familiar with, you are going to rely on your people assessment skill, your surveying skill, and intuition. Do note, that if you’re going to hire someone to be an expert in the field, and constantly doubting his work, then you need to one, either hire a new person, get some training in the field so you can ascertain whether or not doing his job properly (but then you’ll be micromanaging; doing your job and their job), and finally you can keep your ears open to see if there are disagreements with the approach.

It’s important to realize what type of management the organization hired you for, so you know if you’re managing the way they expect you to. In a way, we’re all cogs in a larger machine, if we’re fulfilling our purpose, things will run smoothly, if we’re not, there are going to be hiccups.

Facebook IPO: The things you can learn!

Wednesday, February 8th, 2012



The consolidated statements of income data for each of the years ended December 31, 2009, 2010, and 2011 and the consolidated balance sheets data as of December 31, 2010 and 2011 are derived from our audited consolidated financial statements that are included elsewhere in this prospectus. The consolidated statements of operations data for the years ended December 31, 2007 and 2008 and the consolidated balance sheets data as of December 31, 2007, 2008, and 2009 are derived from audited consolidated financial statements that are not included in this prospectus.


You should read this information together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes included elsewhere in this prospectus.


     Year Ended December 31,  
   2007     2008     2009      2010      2011  
     (in millions, except per share data)  
Consolidated Statements of Operations Data:             
Revenue    $ 153      $ 272      $ 777       $ 1,974       $ 3,711   
Costs and expenses(1) :             
Cost of revenue      41        124        223         493         860   
Marketing and sales      32        76        115         184         427   
Research and development      81        47        87         144         388   
General and administrative      123        80        90         121         280   
Total costs and expenses      277        327        515         942         1,955   
Income (loss) from operations      (124     (55     262         1,032         1,756   
Other expense, net      11        1        8         24         61   
Income (loss) before provision for income taxes      (135     (56     254         1,008         1695   
Provision for income taxes      3               25         402         695   
Net income (loss)    $ (138   $ (56   $ 229       $ 606       $ 1,000   
Net income (loss) attributable to Class A and Class B common stockholders    $ (138   $ (56   $ 122       $ 372       $ 668   
Earnings (loss) per share attributable to Class A and Class B common stockholders(2):             
Basic    $ (0.16   $ (0.06   $ 0.12       $ 0.34       $ 0.52   
Diluted    $ (0.16   $ (0.06   $ 0.10       $ 0.28       $ 0.46   
Pro forma earnings per share attributable to Class A and Class B common stockholders(2):             
Basic              $ 0.49   
Diluted              $ 0.43   



Costs and expenses include share-based compensation expense as follows:


     Year Ended December 31,  
       2007          2008          2009          2010          2011    
     (in millions)  
Cost of revenue    $ 1       $       $       $       $ 9   
Marketing and sales      3         4         2         2         43   
Research and development      56         7         6         9         114   
General and administrative      13         19         19         9         51   
Total share-based compensation expense    $   73       $   30       $   27       $   20       $ 217   



See note 2 of the notes to our consolidated financial statements for a description of how we compute basic and diluted earnings (loss) per share attributable to Class A and Class B common stockholders and pro forma basic and diluted earnings per share attributable to Class A and Class B common stockholders.

As you can see, Facebook was losing TONS of money until in 2007 and 2008, and it wasn’t until 2009 that revenue overtook expenses. Think about that, a company started in 2004, losing millions of dollars a year, and not until 2009 was it profitable. 5 years of just spending money, 5 years of justifying the lack of revenue and the costs of everything. 5 years of, “Yeah, we’ve been losing a lot of money, but you should still invest in us”.

Another interesting thing to look at is the MAU graph, it details out what Facebook has been doing since 2004, and how many users they have obtained through that time:


I just find it AMAZING how much information is being provided as a by-product of Facebook going public.

The link to Facebook’s Registration Statement can be found here:

Facebook Timeline Gets Negative Feedback

Monday, December 19th, 2011

Don’t take my word for it, check out the all the requests on Facebook for aid in restoring their OLD Facebook profile.

The list is MIGHTY long and is only saved by how users keep starting new threads on the Facebook community help forums. Below is a screenshot of a single thread complaining about the new “feature”. I don’t know where Facebook gets the idea that their users LOVE this feature, but for all those who’ve accidentally opted in, they’re desperately trying to opt OUT.

Perhaps this is what all the other social networks have been waiting for, the one dangerous fatal mistake that can cause Facebook to fall off the top.

If you haven’t activated Timeline yet, I don’t recommend it. If Facebook decides to make this permanent, I WILL switch to a different social network, probably Google plus.


Cultural Value of Employees

Wednesday, July 7th, 2010

After watching a few departures from my company, I have come to realize the cultural importance of employees. Each employee contributes in their own way to the company in terms of work ability and cultural value. When an employee works for a company, they’re working for the company because they believe in the company’s product line, they enjoy the development environment, and they feel like they’ll contribute to the company while growing with the company.

When an employee leaves a company, they not only reduce the total work capacity of the company, but they also reduce the cultural value. The benefits received by other employees will definitely be diminished. Sometimes this loss is small, sometimes it’s great, and sometimes they might even have something to gain.

When an employee leaves, it starts a snowball effect. If any of the employees were on the fence about leaving the company, this indicates that marginal benefit is equal to marginal cost. If marginal benefit is a factor of cultural value, then this would imply marginal cost now exceeds marginal benefit. Thus, that other employee leaves. Then people who are affected by employee 1 plus employee 2’s departure will now depart and etc.

In order to avoid this, the company will then have to increase the marginal benefit the remaining employees to stem the snowball effect. You can probably even measure the cost of the cultural value of the employee by how much money you’ll have to spend to keep the remaining employees on board. This effect is greatest if you have a large employee base, and the employee has a great effect on other employees. If an employee is leaving, you’ll definitely have to take these things into account before quickly dismissing him. If possible prevent the departure of the employee altogether, if not pray that you’ve done the cost-benefit analysis correctly otherwise the fate of your company might be at stake.