Why diamonds are like donuts.

Watch the evening news and wait for commodity prices to include diamonds. You won't see it. Markets don't trade diamonds. You and I sell houses and cars, but not diamonds. We can specify a price for copper and gold, but not for diamonds. Jewellers may talk price per carat, but where does that number come from?

In 2011 Wired did a piece on synthetic diamonds. A jeweller was presented with two gem sized yellow lab grown diamonds and couldn't tell if they were real or not. The price could have been $250,000 or $100. Each gem was created in a lab for about $100.

Diamonds like donuts, tend to stay off the market once sold. A commodity is something people buy and sell, anything useful. And that's why a diamond is not a commodity. The last person to buy your diamond turns out to be you. Diamonds, like donuts, rarely see second owners.

In 1990 DeBeers controlled 80% of the world's diamond market, down to about 35% today. Diamonds are an industry to be sure. They are just not an investment. The life of a Coach handbag, a donut and a diamond very much stops once you buy it.

Maybe that's what they mean by, "diamonds are forever." You will keep it forever because you can't really sell it. What is a diamond worth? Whatever you paid for it.

Seeing the obvious, seeing that the emperor really doesn't have clothes. Running companies, hiring managers. A pope gives two weeks notice, your accountant gives you a month. Obama thinks Boehner is the president and wants him to solve the budget cut problems. If 46 of your employees paid back expenses to avoid conflict, what would you do? That's exactly what 46 Canadian senators have done since 2010. Hyundai's engineering is on par with Audi, but the price is 30% lower. Can you see what's going on?

The management lesson here is that most of what we think is true, just ain't so. The second lesson is, if you just listen and watch very carefully, most of the information you need will present itself.

This week the USA housing market is showing huge gains. BC is looking good, and 2013 will be a great year.

Diamonds, donuts, who knew they were the same?
Wolfgang 

Leave the car at home. Your plate ends in "6"

Bags packed, ready to disappear for a couple of weeks to Puerto Vallarta. When the aircraft's wheels leave the ground, my body physically relaxes. I have official permission to let go. Nothing can be done except go with the flow.

It's 5:30 am, time to leave for the airport. Start the car, load my bags, check my license plate number. Today all plate numbers ending in "6" aren't allowed on the road. Pollution problems, Vancouver now alternates who gets to drive depending on your plate number.

My plate PAX 206. You're kidding me, right? I can't use my car today? A cold sweat begins to form. My choices are to call a cab or risk driving my own car, possibly get a huge fine and be taken of the road.

Somewhere there was an alarm ringing. An emergency. I turned off my iPhone wakeup alarm. I was dreaming. In my dream I confused Vancouver with Bogota.

Life is good, relax. It's Vancouver. We can drive any day of the week we like, any time of day, anywhere! I checked in early, my car was safe with the Park 'n Fly bandits who'd wash it for me by the time I returned.

Human rights atrocities in China? Financial corruption in Russia? Greek unemployment at 27%? Afghanistan bombing? I'm so grateful I live in Vancouver, all these other things don't mean much right now. I'm glad I can get to the airport and into the Mexican sun.

In the end, life happens at a human scale. Life is not global, it's local. My life is about as good as this moment. The same holds true for every person who works for you. They don't need policies or vision, they just want their daily lives to be meaningful, respectful and happy. 

Manage people at a human level, take care of the little things, keep relationships considerate and happy. It's not much more complicated than that.

Let's build great companies, one human at a time.
Wolfgang

p.s. Bogota, capital city of Colombia. Eight million people, 9,000 foot elevation, some similarity to Vancouver, just a few degrees warmer. New airport, but driving days are staggered depending on your license plate number. You can't just drive whenever you want.

p.s. I care about the world. But I can only care if my own life is in order. When the little things are not in place, the big things are out of reach.