Hertz doubled the cost of my car rental. Here’s their process design trick.

This year, during my family holiday, I discovered how Hertz – and many other car hire companies – have crafted a process involving dark patterns to trick stressed travellers into paying far more than necessary for their car hire.

I’ve used Hertz several times over the years, particularly in the 2000s, so I expected good service, a decent car, and straightforward business.

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Taller buildings let us design better towns

I lived in a range of places as a kid, partly because my father was a bit of an itinerant who didn’t know what he wanted in life, other than that I mustn’t live with my mother. Go figure.

Eventually I got to settle down with my grandmother, but in the process I learned a lot about life as a child in different places. Where I felt safe and where I did not.

I did not feel safe in large council estates surrounding cities. I did feel safe in a caravan park. I did not feel safe in a city centre. I did feel safe in a built up part of a large city, living in an apartment block.

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Don’t design in customer traps on your systems

You know that friend, the one who always promises to help you move flat, or help you fix your mower, but then doesn’t turn up? Yes. Or the guy who goes on a date and pays for the meal and somehow that comes with access to your body? Or the airline that makes you think you have to pay for a seat upgrade in order to take any baggage on board when actually you don’t?

The first two are obvious red flags. We all know people like this, and once we’re done excusing their behaviour we tend to move on. They’re often charming people at first. They have to be. They keep needing new friends and new partners, so they get really good at the introductory gab. But as I always say, the only perfect people in this world are people you don’t know very well yet.

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A new manifesto for the web

This blog post has now been re-arranged with the manifesto at the top, and the reasoning that led up to it beneath. Because, after all, placing the important content six or seven hundred words in is hardly being pure, is it?

Web Dogma 24. By me.

Content First. All articles, images, and graphics must be there to serve a purpose. Superficial or filler material is forbidden.

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Design Dilemmas: When bathrooms become battlegrounds

In the world of transgender rights, the battle for the bathroom has reached fever pitch, especially in the USA. Now, I’m not here to referee in this brawl – because on one side of the debate you have the ‘TERFs”, and on the other, the trans rights activists sometimes labelled “handmaidens”. Both are terms about as socially acceptable as weeing all over the toilet seat, and on the extreme fringes of both you find calls for violence. It seems every modern campaign group needs its villains and its sycophantic followers.

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A little change on this website

In the past, this website was sort of my place to keep family and friends in touch. I first set it up in 2005, just before going away to Peru on travels. It was a great. Facebook had been invented but wasn’t generally available or popular yet, other platforms weren’t well thought through or scattered, Twitter didn’t exist. But installing WordPress on my cheap Yahoo web hosting turned out to be one of the easiest ways to publish content and share it with the world.

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The astonishing power of modern computing

Being very old (or at least, that’s how I feel being in tech!) means that after coming up to nearly forty years in technology, I’ve seen some changes.

My first computer at home, that I owned, that I could truly call my own, was a Dragon 32. It was a small, 32KB computer using the rather lovely little 6809 processor. This CPU ran at 2MHz and the system as a whole allowed me to learn a heck of a lot about computer science as a geeky teenager who was busy ignoring sports.

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The productivity paradox

I came across this chart recently and it gave me pause for thought as someone whose life work is designed to improve productivity. It shows that from 2008, although we know technologies have been growing in power, productivity growth suddenly dropped away from the trendline following the global financial crisis. Why?

This is where I fall back on an old story as a developer trying to make things more efficient. I worked with my colleagues to bring a client company the equivalent of about ten hours a day of labour saving due to using a well structured database for better data integrity over their previous ‘loose’ system. As they expanded, each branch would save at least an hour of time, and they were no longer capacity bound at each branch where more customers would linearly increase administrative work in a difficult recruiting environment. This would provide a return on investment (ROI) of less than a year.

It worked exceptionally well and the person we’d worked with said their staff were even worried redundancies might be on the way! This was never going to be the case in a growing company, because there’s an infinite amount of work to do.

All was good.

Then for some reason, our contact’s role was diminished and they eventually left the company. And the knowledge of the improvement left as well. The board’s innate distrust of anyone and their perception of us as no more than a cost base resulted in a great difficulty for us to help them without dramatically increasing costs by gold-plating every spec and decision.

This left the client unable to gain for advantage by exploiting our skills. It was difficult for us to see, and we could do little for them other to look for cost savings when, in reality, they needed to implement cost savings by using us more. Instead they opted for a recruitment based strategy to feed their growth and we parted ways as they shifted the system to a maintenance partner.

In all my thirty years of development experience I’ve seen this again and again. Instead of sticking with a solid set of developers who have learned your business details, chop and change to save money. Treat developers as a cost base and you lose so much knowledge that you’ll fail to gain productivity nearly as quickly as you could treating it as a partnership.

I don’t feel this is unique. I see lots of projects following an arc of big development then a cost reduction period which ends up losing the momentum of ongoing improvement.

Solving the productivity paradox

A strategy I now suggest when selling is to spend 60% of what you thought of on your project in year 1, then 40% in year two, 30% in year three, and then 20% a year throughout the product lifecycle. Software isn’t like building a bridge where things stabilise then stay them same for thirty years, sadly.

Fundamentally, I think corporate culture around custom software became both cautious and speculative following the global financial crash of 2008 and only invested in technology if it felt like it would create some impressive unicorn of an offering. We saw lots of developers tied up with venture capital chasing big things like blockchain and AI whilst ignoring the importance of daily incremental improvement that adds up to a huge return over time.

The answer then, is that if you have access to capital, you should stop chasing unicorns and start thinking about continuous pragmatic development aimed at dealing with all the little productivity blocks in your firm. Look to Kaizen style methodologies to help with structuring your processes around this.

What do you think? Feel free to comment!

Interesting times in the world of software

About a decade ago, I was at a conference and talking to a fellow developer (I still call myself one, even though I don’t code so much these days) when he giddily told me about the funding he’d got for building a new piece of software he was hoping would make it big. It was a two year project and he’d got £100k funding. I asked if it was just him… and no, he had a colleague. So £100k, for two people, for two years? £100k didn’t sound a lot… £25k/yr each, basically. Or what you can earn in a much simpler tech support role. I decided not to say anything and leave the poor guy in peace, although this sort of work seemed a lot like gambling to me.

Today, things are different although there’s still a sniff of gamble about it overall. If you’re a developer it’s relatively easy to find a highly capitalised employer that’s positively dripping with money who will pay you £60k-£90k a year. Potentially quite a bit more. This reminds me of the late nineties dotcom boom. In 1997 I myself quit my safe but somewhat dull job at a multinational to become a freelancer, doubling my income almost immediately, and quadrupling it another year later. The new work was, in some ways, more interesting. It was also a lot more stressful, bad for my health, and definitely wasn’t the most exciting coding work. But it paid. I honestly don’t blame developers who decide to do what I did 25 years ago. It set me up. I think it was also a large part of why I had a heart attack in 2019… living out of hotels for a decade wasn’t healthy, and cheese became far too much a food staple for me as a vegetarian. However, the money was very good and it helped set me up. When you’re poor, it’s very hard to catch up and a good income was necessary for a while.

I bring this up because today I’m not ‘just a developer’ but actually run a web development company that specialises in websites and custom software for clients. And things are happening today that are reminiscent of the dotcom boom on the late nineties. 25 years have passed, but people don’t really change nearly as much as you may think.

The dotcom & Millennium Bug era

The late nineties were a period of post-recession growth and capital release. Banks had been deregulated, money was being created in the way it can be, and we were riding high on increasing productivity. Life felt good. And when money is created it can be invested.

There’s only one little problem in that. Sometimes, people get giddy and start splashing the money out too readily. The boom of the late nineties and early noughties, and the deregulation that encouraged it around the world, eventually led to the financial crisis of 2008. I’m a bit of a cautious soul, so even though I had plenty of income, I resisted borrowing too much to get a bigger house. In some ways I was foolish, because I could now be living mortgage free in the house I have now. But I figured that not having a big mortgage would afford me some other freedoms and I could use my money elsewhere. Mostly I just invested my money in solid companies. Friends, however, were telling me to invest in dotcoms. But I looked at the fundamentals. One example was a firm called Vocalis. They did, basically, telephone voice services software. Small team, and had some crazy valuation that was effectively equivalent of £20m per member of the staff. I rightly reckoned that was mad. My friend went ahead and pumped money in, and I mocked him. For a while I looked a fool. The value of the shares rose and rose.

Right now, there are loads of speculation bubbles. At the café at work I was trying to explain Bitcoin’s fundamental problems to our barista, when our receptionist came over excitedly wanting to know more. Both seemed interested in getting involved. That means the crash is likely imminent. They’re both lovely people, but in the economic chain, they’re nowhere near the top, which means that the speculation bubble is reaching it’s limits.

“If shoe shine boys are giving stock tips, then it’s time to get out of the market.” – Joe Kennedy, 1929 as the stock market was about to crash and lead to the Great Depression

So the dotcom boom and Millennium Bug led to a boom in demand for developers. New software was being created to replace supposedly outdated software that couldn’t be fixed (narrator: “It could”) and salaries were rocketing. I took advantage of that boom. I also knew it wouldn’t last. And it didn’t. My day rate as a PeopleSoft developer went from £200 a day in 1997 to £600 in 2002. It could have been higher. Cisco did an amazing job of raising funds in that era and I remember they kept offering me more and more to go to work for them in the Netherlands. But I didn’t really want to go to work there. I never really chased the money, so that’s about where I peaked. But I remember people with the right skills, experience and self confidence were on as much as £1k a day. That’s getting towards £2k a day at today’s prices. Some skills seen as super hard and rare could command double that. Most people didn’t, of course, make nearly that much, and some people preferred a job with reasonable hours and close to their families – a very valid and decent decision. But I was single with no ties.

There are a lot more developers around today – good incomes have brought many people into the trade. I meet people who called me a nerd in the eighties and now they’re working in IT. It’s a bit weird.

Today’s situation

Now it’s a bit weird. Rates still aren’t at the dotcom level, once adjusted for inflation, but they’re close. You can do very well in tech. But in my little firm we pay typically around £40k for a developer, plus various benefits, kit, resources etc, meaning you’d need to make around £70k as a freelancer to equal it. At least the way I calculate things and always did. I nearly swapped my £600 a day for £60k a year and kind of regret not doing that.

But why have the rates risen? Well, there are a few hot areas, and they can be summarised as AI, analytics, mass market apps, and blockchain. I’ll discuss each briefly:

AI

This is a hot one – the idea we can replace rooms full of people doing dull and not very high value work (from the perspective of the company) such as service desks with AI bots is very attractive. It won’t work though. Most “supposedly AI” bots are just following decision trees and the only bit of AI is in parsing the meaning out of a sentence in a very tightly defined context. AI is useful today for categorisation problems – e.g. looking at a picture and deciding “this is a cat” or “this is a threatening comment”. It’s not brilliant at the job, but I like that an AI can work out which pictures are of my Mum, for example, even if it misses about a third of them… it still makes my life easier. A bit. But what an AI can’t do is right a decent blog post. Sorry, it can’t. They’re awful at it. There’s loads of AI generated content out there and it feels obviously fake. The main job of these AI generated blog posts is to trick other AIs (Google, Bing etc) into categorising a website as useful. And because AI’s make toddlers look worldly wise, they can be easily fooled… and that means you can’t trust them with anything of real importance. Like your business decisions.

But, it’s a hot keyword, and naive venture capitalists like the idea. So in comes the money.

Analytics

Tracking and stalking customers across the internet is very attractive for advertisers believing that doing so makes them seem more interesting to consumers. I’m not convinced. People often find it creepy. They feel like they’re constantly stalked. They visit the website of, say, a printer supplier and they receive ads for a month for printers… but not only for that supplier, but for other printers because the tracking provider is cheerfully using your data as a supplier against you and selling that information to your rivals! I think advertisers are starting to cotton on, but are unsure of what to do… but I know there’s a lot more direct selling of adverts between publishers and advertisers than there used to be.

But, the siren call of analytics is strong, and people love a nice chart on which to justify a decision, so the more nice charts your system can create, the more people will pay to use it and try to gain an advantage over competitors. And advertising is huge, so in pumps the money. For now.

Mass market apps

Can you build the next Facebook, Instagram, or Slack? What’s the potential for an app that lets people read books from any publisher for a fixed monthly fee? How about an app that revolutionises food delivery? Interestingly, some apps are about replacing old and inefficient intermediaries and putting new ones in place. Uber is a nice way of hiring a minicab with flexible pricing that rewards drivers for being available at the right time. They don’t disintermediate, however. The customer is both the driver and the passenger. The new intermediary takes their share.

If you can replace old intermediaries you can make a lot of money. Imagine taking 0.5% of every single financial transaction, like Visa do? That’s a lot of money. Then you have intermediaries between the card firms, providers, and networks, such as Stripe… and then there are those replacing old ones, like Wise, for money transfers across borders.

What other things can be improved? Well, literally anything.

But most attempts to build these apps and the supporting infrastructure are doomed to never turn a profit.

Blockchain

Blockchain is a really interesting concept for a public ledger, using an interesting concept called proof of work to make it hard for any one person to try to dominate the network and win the consensus mechanism on new transactions. There are theoretical ideas out there to improve on this, but at the moment they remain just that and haven’t been proven.

And it’s a scam. Pure and simple. But it’s a hot topic. Bitcoin, Ethereum, Dogecoin and many others are actively speculated upon, as well as being used for the exchange of value – often in a hope to evade regulators. It appeals to the natural rebels amongst us because it’s outside of government control… and given that governments aren’t always a force for good, I get that.

Problem is, Blockchain breaks the rules of good software development… if you look at the big O notation for software, it has to follow certain rules or it will fail at some point and need to be re-engineered. Big O matters. I don’t have academic access to papers, and the internet is full of vested interests pretending that Blockchain scales just fine. I used to see the same in WordPress land, where people said the software scaled fine… but it doesn’t. In WordPress we get scale by putting a layer between WordPress and the internet to balance things out – the work the software itself does goes up in line with the number of people talking to WordPress. We can define that as O(n) so long as you know what you’re doing – that’s OK. We can live with that. But the consensus mechanism required for multi node agreement of transactions as required to track transactions will, by its nature, follow a curve that is likely to be somewhat greater than O(n^2) (each node does O(n) work in a linear fashion but the total work done on the network as each node is added therefore grows as O(n^2) plus a bit for network latency and overheads. Yet bitcoin transaction cost isn’t following that curve in spite of huge interest because, I reckon, most Bitcoin trades aren’t real.

Yes, that’s right. And what does that mean? It’s because wideboys, crooks and the overly-optimistic are involved. Given it is, by design, a pyramid scheme, it will have to fail at some point. But people are motivated to hide that, so there are Bitcoin tracker schemes, rather like gold purchase schemes, that never hold the asset in question. They will pump and pump values as hard as you like. And as long as there are new people coming in, like our receptionists wishes to, all is good.

And there are enormous amounts of money to be made. As in a goldrush, the people making real money are the shovel makers and traders. And they need developers. So for as long as there’s money to be made, coked up wide boys will be gurning their way through stressful meetings, fidgeting and anxious to cash in before it crashes out. You can earn a lot there. For a while.

OK, so thanks for the very long essay. What does it mean then?

Well, it means developers are really expensive right now. Small firms that do actual useful work and aren’t highly capitalised (like mine) can’t grow because we can’t suddenly charge our customers double for the work so that we can compete against these booms. It’s as if a very rich person has moved into your town and hired all the builders possible to create a huge mansion. They even approached builders working for firms and offered them double to come build that mansion. Soon builders are all swanning around town in Teslas and feeling pleased with themselves for being so cunning as to be in the building industry.

Same in software. Locally there’s a Tesla with a crypto referencing private number plate and a young, bearded and muscular techbro driving it. Fine, I’m not going to judge. He’s happy and making good money.

But if builders are all hired by the rich, the rest of us get priced out. Same in software. Small firms are going to find they can’t afford websites unless they just use some cheap web builder platform – it’ll give a less good solution, but it’ll do the job. Ish. And the firms that can afford will do that bit better. And better. And the gap will grow.

At my firm I’ve had to raise salaries, but we still struggle to clear a profit with the raised salaries. I’m fiscally conservative, so we’ve always had decent cash reserves. This lets us ride out the storm. From 1997 to 2002 dev rates went crazy. By 2005 they were back to normal again. We as a firm can’t handle eight years of this. But it’s not quite the same as back then – you can now hire developers globally and have them work remotely, if you really wish to, which can save some money and also help those countries out with extra foreign revenue. I, however, really like quality and good communications and I find that a geographically tight team works the best. It also makes it easier to hire new people into the trade. So, for now, I’m sitting tight. I won’t seek venture capital, or borrow. And if the worst comes to the worst, we’ll add AI to something that does basic statistical analysis, and blockchain to something with two computers in the network and hope someone out there fancies throwing us some money so we join the party. In the meantime, however, there’s still a healthy living to be made as a business doing useful things and avoiding the hot trends. I never set out to be rich, merely secure – I’ll ignore the rich mansions and do my own thing, creating good code for good people.

n.b. about the above – the above isn’t a paper. It’s a set of opinions designed to inform and illuminate about what’s happened. It relies on anecdotes. Don’t take it too seriously and don’t use it as the basis for what you want to do with software and investing in software. Or crypto. Do your own thing with the information you gather from multiple sources. Also remember that a lot of people say misleading things because it’s in their interests to do so, and that you shouldn’t trust a random blog or news source on the internet. Mine included.

Why You Should Be A Secularist

All these arguments about Britain being a ‘Christian’ country at heart (see Baroness Warsi here, here and most importantly here) are so much bull, and I’m tired of it.  It’s part of an attack on the growing secularist movement but framed in such a way that it’s designed to scare the religious into thinking they’re going to be stopped from practicing.

We’re No Christian Culture

The point being, it's easy to make a logically inarguable statement that is still utterly and completely fallacious. "Jesus Saves" could be another one - maybe he does, but there's no way to prove it.

I mean, look at how we named our days of the week – there’s no “Jesusday” or “Paulsday” – no, we have Thursday = Thor’s Day, or Wednesday = Woden’s Day = Odin’s Day, and Friday = Freya’s Day.  At Easter it’s all about fertility and I don’t see many people chowing down on chocolate crucifixes.  OK, that last bit is pretty flippant, but the truth is, a lot of our culture has plenty in common with old Pagan rites and beliefs.

Religious Freedom = Good

So if you’re Christian then that’s fine, but any politician who says that to be secularist is somehow non-Christian is like a secularist saying that being Christian, or Muslim or Rastafarian is bad.  It’s important for all to respect all our beliefs – few are provably right or wrong, but if government ever becomes about religion, or driven by religion then it causes inevitable sectarian divisions that are frankly disastrous.  Not only that, but government moves away from being evidence based to belief based.

Scrub that last bit – a lot of government is belief based anyway, even when religion doesn’t come into it.  People are like that.  But secularism is a big part of moving towards evidence based governance and away from running a country based on peculiar notions of what is good or bad based on differing interpretations of where we come from and who we’re supposed to be trying to please in order to get a decent afterlife.

I’m a secularist.  Not a militant one, but I do believe that state and church need to be completely removed from one another.  In Britain we have a curious situation where there is still a small amount of religious interference in the state – it’s almost inevitable when your nation’s leader is also expected to be the head of the church.  Currently an English heir to the throne can’t stay as heir to the throne if they marry a Muslim, for example, unless the Muslim converts.  And that, if you think about it properly, is a serious worry, because it tells people that it’s OK to consider a different belief system to be inferior.  It legitimises religious intolerance, which is bad for all of us.

So let’s keep pushing for a secular state, and let’s encourage religious freedom.  I’m not going to reveal my religious beliefs here, but I’ll support yours.  Unless, of course, they’re based on intolerance – in which case, time to take a hike.