2.09.2007

Blind Developmental Arrogance Disorder Part 2



I developed the BADD 40 scale to help people grade a company before they make a potentially dangerous investment decision. The BADD 40 scale is totally unscientific; it was borrowed from an industry friend who uses a similar scale methodology for totally unrelated reasons. The BADD 40 scale started out as a bit of a gag, but somehow people in the investment community have embraced the BADD acronym. Truth be told, I couldn’t sleep, and I am sitting at the Los Angeles airport awaiting a flight home so I decided to spend a few minutes to write this article.

Grading something as complex as a strategic investment requires some serious thought. Certainly, this type of grading is more deserving than a simple scale from 1-10. BADD 40 involves grading four key areas – otherwise known as the FACK method.

• Financials
• Arrogance
• Competitive Outlook
• Karma

Typically a company that fails the BADD 40 is one that we should all stay away from. The FACK method will help us come up with the overall score.

1-10 – FINANCIALS: (higher=better)

How is this company performaning financially quarter over quarter? Only focus on the financial performance and nothing more, be very critical, and grading it on a scale of 1-10 should be fairly easy.

1-10 – ARROGANCE: (higher=less arrogant)

Did anyone from the company make any arrogant comments, or does the company have arrogant advertising? Public arrogant comments and advertising are the worst and deserve far less points. If you cannot find any recent arrogant comments anywhere then you should give it a higher score. Remember, the higher the number the less arrogant they are.

1-10 – COMPETITIVE OUTLOOK: (higher=better)

What is the general consumer & industry reaction to this company or product as of late? How is the employee rentention? How does this company compare to their competition? How is their market share growth/shrink? The easiest way to grade competitive outlook is to list off the top 4 competitors, and list them from highest to lowest.

1-10 – KARMA: (higher=good karma)

Does this company give off good Karma or bad Karma? The easiest way to grade Karma is to look at the CEO, look at how much they make compared to his/her performance. Look at how the industry reacts to this person. Most important, is he or she respected by his/her employees? If he or she suddenly passed away, would they go to hell? Bonus points should be awarded to those who donate money to charitable organizations.

Overall scores of 25 or more is pretty darn good if you ask me. I think a 20-25 is certainly worth holding. Any failing grades of below 20 should be taken off your list for now, at least until the arrogance disappates. If you’re a betting person, anything 15 or lower could very well be considered a short depending on the 52 week low and high.

Perhaps we can brainstorm a bit here and if anyone has any suggestions to tweak this scale please post them here.

If you missed the previous article feel free to check it out.

Also, here's an article about a company with a really baaaaaddd case of BADD

7 comments:

je said...

Sounds fairly accurate to me. I think Sony would classify as a 3-4 on this scale. I think Microsoft struck really close as well with the "Whatswrongwithu.com" website

Steven Richman said...

Rahul,

I really think you need to look at HP a little closer and some of those around you who claim to care about people and be visionary and sensitive and open and progressive and supportive and all the adjectives you love to laud them with. You can grade a company or its leaders based on perceptions or reality. In your case, they are treating you good, so your perception of them is positive. In my case they did not treat me good, and so my perception of them is negative. I don't like being used...and abused...and treated in an arrogant and political and selfish manner. It is not ethically right or decent. So, when you laud HP please try to filter your enthusiasm for how they are befriending you because they just bought your company. Please see them as they truly are...or at least what is deeper than your mere perception based on being their wealthy spokesperson for gaming. Maybe I am all wet...but what I sense I sense...and karma is about energy...not perceptions. I am very spiritual, and so this missive your wrote demanded my response.

Best, Steven

LimitlessThinker said...

If I were to comment about Sony it would be that they are well below 10...IF of course I were to comment. Working for them and all and seeing how absolutely arrogant and contentious and fear-based and insular and secretive they behave internally...it is simply unreal. HP...compared to Sony is my best friend. Haha. Microsoft is arrogant, yet they are not as astonishingly closed minded as Sony is. I have seen both sides. Sony could actually be one of the worst big brand companies in existence.

Justmoe said...

It is hard for me to comment on this scale as I am classified as a window shopper nor an investor. But when reading closely I have come to the conclusion that you did not take any time at all to come up with this scale. Regardless of who is badd and is not. This scale was designed using Sony and Microsoft as its backbone. And you quite obviously rigged it by adding the charity at the end so nobody confuses it. Thankfully as a shopper I don't have to care who makes money and I can buy anyones products and then sleep at night.

P.S. Of the 2 companies this was designed after I buy equally from both.

P.P.S of all that I have bought from those two companies microsoft was the most buggy. and I now realize that your scale left out overall product reliability which is by far more important then the others.

lionzub said...

Unrelated to this post, I just wanted to say that I watched "Grandma's Boy" this weekend. Hilarious movie, and I wanted to comment on the white Voodoo PC owned by one of the characters (JP). Although there wasn't too much focus on it, the unit looked so awesome!

Sandman said...

BADD...am I the only person to see the irony here?

I have been watching Voodoo this year because I am buying a new system soon and finally have the money to buy my dream machine. I love the image of Voodoo, but alas it looks like that is all they now have to offer. Since the "merge" with HP, nothing has really happened other than a stop to interesting development. So far here is what I see:
1) A lot of serious complaints in the Mutthaboards about quality and what you actually get. I think I even read an employee frag a customer for his complaint in a mocking tone.
2) Systems that cost about $1000 above the price of a fully-loaded Apple MacBook Pro, but that have far less powerful systems (great paint, though).
3) Vague specifications as to what you will actually get for your money (image may not reflect laptop).
4) The website does not work with dead links that lead you to loops (like the home page connection to Vista).
5) An upgrade system/warranty that does not seem to offer much because in the time you want to upgrade parts are no longer available.

So there are my thoughts as someone who was dying to buy a Voodoo machine, especially since I wanted to support a Canadian company. Is this now just a shell company sold for profit and now gone BADD? Any thoughts?

Sandman

Rahul Sood said...

Hi Sandman,

I think you have some very valid points, and you aren't the only one who sees some of the things you have pointed out :)

Part of the reason we came together with HP was so we could create a portfolio AND support it on a much larger scale. Had we not understood our strengths and weaknesses ahead of time then we probably wouldn't have completed the deal.

Believe me, changes are in the works - changes for the better - and we have some incredible things happening at HP Gaming! Give us a few months, and when you see our product portfolio start to launch I'm sure we'll retain you as a customer!

As far as Voodoo pricing goes, well we believe you get what you pay for - and though people tend to be vocal on our forums, we generally get great reviews on customer service. We are working everyday to improve the customer experience.

Fortunately we aren't so arrogant that we don't understand when change is a good thing :)

Thanks for being open and honest, and good luck.