GamingtheSystem

I was sitting on the couch, loading updates to my computer. I had to download a new version of the solitaire game I use when I'm stuck writing. While I was downloading it, Daughter#2 asked me if I'd tried one of the games, "poker square." I had not. She insisted I try it, so I did. Imagine my surprise when she said, "Hit new deal, that's a bad hand." She keeps looking for a better deal and won't play unless it's a reasonable deal. She doesn't care if she needs 20, 30, 40 new deals. She won't play until she has a royal flush (at minimum). This way she has an excellent chance (> 75%) of winning.

I see lots of opportunities to game the system at work when I consult. Any particular games stand out for you? -- JohannaRothman 2005.09.07

I try to pick contracts the way your daughter picks deals. If I don't feel that I can win (do what is required and learn something) and the client can win (gain something worthwhile), I don't want to play. I will keep looking until I find a contract I like better.

I don't think that is quite what you meant, but it seems to me that is what she is doing. SherryHeinze 2005.09.07

Over a decade ago, I worked at an aging startup (no that's not an oxymoron) that had an heroic culture. By that I mean rewards were reserved for those who jumped in in the middle of a crisis and resolved the issues at hand. Towards the time I left, I noticed there was a growing cadre of people that stayed out of the mainstream working on personal projects -- theirs or someone else's. Sure enough when a crisis hit, and they came frequently at the end, these people jumped into the thick of it, at least one of them getting the brass ring. Most of the other crisis heroes would get at least a pat on the back for working all-nighters. I remember reading James Bach about pathological heroes not too long after that. His words resonated. James wrote that we need heroes, but not this kind. I don't believe the problem lay entirely with the crisis heroes. After all, they were clearly doing what the company wanted.

MikeMelendez 2005.09.08

" . . . an aging startup . . ." That's good. - jb

I'm often involved in the Approved Contractor Game. It goes like this:

Someone on a project at Big Company X (BCX) works for Even Bigger Company Y (EBCY), which is doing testing or development services for BCX. That person is aware of my services and wants to hire me. BCX has a hiring freeze on, and it doesn't hire contractors as a matter of policy; they hire service companies instead. Even Bigger Company Y does handle contractors, but only Approved Contractors. I am not an Approved Contractor. So EBCY turns to Contracting Agency Z, who is willing to hire me and contract me out to EBCY, who in turn sells my services to BCX. Thus BCX pays about five times my rate to EBCY, EBCY pays about double my rate to CAZ, who collects the difference between the rate they pay me and the rate that they collect.

Why this system? It's because BCX doesn't want to pay for employees, because they're expensive, and they're also afraid of being ripped off by individual contractors.

Inevitably at these companies, security is an issue, and everything is very tightly firewalled and passworded. I can't get access to the resources I need to do any work. So in order for me to be effective, someone tells me all of their login IDs and passwords.

Door entry passes are never available at such companies for the first few days, so I follow people that I've never met in and out of the door.

MichaelBolton 2005-11-02

Along with all that pass-through often come agreed rate bands and margin "requirements" for each stage of the deal. I've been there. If the resulting rate for me is one at which I'd take the gig, with an "annoyance factor" worked in for all these middle-people, I'll take it. If not, I try to help them game their system. Like this:

"Well, I understand that the difference between my ask rate and your rate cap with your customer doesn't let you make the margin you would like. Yet, margins for what? I'm not an employee and never will be. You haven't paid me when I am not at a client, and you won't. This business cost you exactly nothing in marketing, and I want nothing from you.

Your actual mark-up is X% given these constraints. Figure about 5% for pushing the paperwork, which is what rebilling services charge. You're about to make (X - 5)% on a chunk of business for doing nothing. At the moment this looks like a slice off a decent sized chunk of money. Why not account for me as an expense vs. an employee, and an x% pass-through is perfectly respectable. More than enough return for simply saying 'yes' to this conversation."

If they are too clue-less or power-less to game their own system to allow something useful to happen, well, you don't want to deal with them anyway.

-- JimBullock 2005.10.03 (The game's afoot . . . )

The contractor rate limit business is trivial to game. Anyone who can't figure out three ways to do so will probably not succeed as a contractor. - JerryWeinberg 2005.11.03

Updated: Friday, November 4, 2005