Angel Theory V1. Paradigm Shift

Book 4. The TBS ™ Total Business Systems

S-World UCS ™ Hawthorne

By Nick Ray Ball 14th June 2018

Index

1. Chapter 10. S-World UCS™

   1. S-World UCS™ Hawthorne
   2. S-World BES™ ‘Behavioral Economic Systems’
   3. The Hawthorne Effect
   4. The Hawthorne Effect for HMRC
   5. Handicaps
   6. 5 Important UCS™ Hawthorne Chapters
   7. UCS Hawthorne – Villa Secrets 2017
   8. UCS Hawthorne – Villa Secrets 2018
   9. Financial Reward
   10. More on S-World UCS™
   11. The S-World UCS™ M-Systems
   12. The Quantum M-Systems

In quantum theory, the act of observation led to the famous argument between Albert Einstein and Niels Bohr. Bohr claimed that only the act of observation can cause a particle to give up its wave like properties and materialise in an exact position. This idea was too much for Albert Einstein who disagreed saying, “God does not play dice,” where after Bohr replied, “Stop telling God what to do.”

About 50 years later, after both physicists passed away, Bohr was proved right, only the act of observation can cause a particle to appear. (Albeit this did not affect the two great works Einstein did in his earlier years, both of which are pillars of modern physics. In this example, Einstein was wrong about how electricity and gravity could be unified, which may sound like a small detail, but is in fact ‘the theory of everything.’)

Liking to make systems from analogies or symmetries from theoretical physics, when I found that the act of observation is also a tenant of behavioral economics, I paid it special attention, and this chapter is the result.

Introducing…

S-World BES™ ‘Behavioral Economic Systems’

This chapter opens up a new breed of software based on behavioral science, S-World BES™.

S-World UCS™ Hawthorne is the first software created specifically from an inspiration from behavioral economics.

Unlike all other software designs presented in ‘The Villa Secrets’ Secret’ which all are part of S-World TBS™ ‘Total Business Systems,’ because the Hawthorne Effect is best described as a game, a competition with winners and losers every day, it falls under the S-World UCS™ banner, as S-World UCS is the Gaming, Tutorial, & Simulation Software components to the S-World network.

The Hawthorne Effect

“The Hawthorne effect (also referred to as the observer effect) is a type of reactivity in which individuals modify an aspect of their behaviour in response to their awareness of being observed.”

I was introduced to the Hawthorne Effect via David Hoffeld’s ‘The Science of Selling.’ Unfortunately, I did not take chapter notes so the following is from memory.

The basics of the experiment described in ‘The Science of Selling’ follows.

A business was split in two; half of the personnel were given a financial motivation and half were not. But when the experiment was completed, all had increased their output.

How could this be? One would expect that the newly incentive half of the personnel would do better; and the other half, who all knew that half of their work colleagues were being incentivised, would do no better and probably worse. But they did not, in fact, all personnel performed better.

The reason why is that both the newly incentivised and the unincentivized both knew they were being monitored and assessed, and that ‘act of observation’ (the monitoring and assessment) increased output throughout all of the office.

This is not to say a financial incentive is not a good motivator, 4 billion people working for money is hard to argue with. But what it does show is that if one can create a constant ‘observation,’ then that observation alone is enough to increase the performance of the whole team.

The Hawthorne Effect for HMRC

To begin, simply, following on from Chapter 7. S-World TFS ‘Total Financial System,’ which features HMRC (the UK Tax Collection Agency).

Because a pure Hawthorne Effect (an effect created without financial incentivization) can be illustrated well for HMRC, the first demonstration of S-World UCS™ Hawthorne will be framed within the new suggested HMRC framework.

After the HMRC example, we shall have a brief tour of the other S-World systems needed to make UCS™ Hawthorne work before presenting the Villa Secrets example. And lastly, leaving with 2 S-World UCS™ excerpts from Angel Theory – Paradigm Shift.

We shall start with another look at the scoreboard that introduced the chapter… And note that the staff and dress codes have been created for Villa Secrets personnel not HMRC.

So, what are we looking at here?

We are looking at a daily competition between a team of 8 HMRC customer service agents, in which each customer is tracked through the support process. If #8 Monica Knowles (who is actually the best rep in the team, as told by her handicap of zero) speaks to a client and guides them all the way to completing the tax return, Monica gets points; and the greater the value of the return, the more points she wins. A customer satisfaction survey simply asking to rate the agent from 1 to 10 can also be added to increase or decrease points per customer. But the main points are won by successfully seeing clients through the process as quickly as possible.

Handicaps

Monica has won the day 42 times this year and has a handicap of zero. Handicaps are needed to enable the weakest or maybe just the newest members of the team to be able to compete and win. Let’s consider the current 2nd placer Mark Gosling. Mark has 20 wins under his belt. But the wins would not be wins if not for his handicap, based on golf, but changed simply to an amount of points given at the start of the day. For example, at 9 am when the day’s game begins, Mark would start with 75,000 points; whereas Monica, with a handicap of zero, starts at zero. And Richard, with a handicap of 8, would start at about 30,000.

As the day goes through, the low handicap players will (on average) collect more points and by the end of the day will win or be there or there about; unless they have a bad day or just bad luck, which happens. In this example, Mark Long is having a bad day.

I would suggest that once the game has been played on enough days, then the two lowest handicap players spend 2 hours a day assisting the high handicap players; mentoring them and helping them to assist the clients who are giving them few or even negative points.

Even if the low handicap players are not keen, or are no good at teaching, that’s ok. They can just deal with the hard enquires and clear the backlog for the higher handicapped agent, who can just watch and learn. During these 2 hours, points count double, each point gained counts for both the low handicapped assisting agent and the high handicapped assisted agent.

Work Flow

As soon as a new HMRC client (identified by their ID) contacts the support team, the first person who speaks to them becomes tagged to their future journey. If the client is assisted and later recontacts HMRC about another matter (a different deal stage), then no problem. But if the client recontacts HMRC about the same problem, then the initial responder would lose points.

All of this will be made possible by adaptations of the S-World CRM-Nudge Ai and the CRM CC Company Controller which would be accessed via desktop computers’ and mobile apps.

Below, we see a mock-up of the CRM-Nudge-Ai’s tasks list, and a point score of 25,000 points is awarded to the agent once they have guided a particular client (in this case, myself, Nick Ray Ball) through the very tricky minefield of the corporation tax form.

Note that in Chapter 7, we recommend a breakdown of the complexities at HMRC and suggest a far simpler system with very detailed tutorials, written and on video. But let’s not worry about that here, rather focus on the game, and that an agent has just won 25,000 points.

Why would a team leader want to help the lowest players? If by doing so, they are in effect teaching their competitors to win?

I can’t say how many customer service agents HMRC have. So, for now, I will guess at a convenient figure of 64.

Below, we see a different screenshot in a similar format. But this time, we see 8 different teams, each represented by each team’s lowest handicap player. In the example we just saw, as Monica Knowles has the lowest handicap, and so the team is named ‘Team Knowles.’

We see Monica’s ‘Team Knowles’ in position 3 with a combined handicap of 257, with Team Nash in the lead with a combined handicap of 179, and in last place is Team Goodbun with a combined handicap of 316. Note that one can have more points than another team as seen in team 4 vs team 3, but the combined handicap is the stat that counts.

At the end of a cycle, maybe a year or maybe per season, a shake-up may happen. Let’s say in Team Nash (1st) both the 1st and 2nd placed agent has scratch handicaps (handicaps of zero). But in Team Goodbun, the first and second placed agent have higher handicaps. In this case, the second placed handicap agent in Team Nash would swop for the lowest scoring agent in team Goodbun (8th).

Whilst in this game points winners do not receive cash, you can be sure that advancement within the department would be linked to both low handicaps and teaching, which pretty much eliminates the need for management. And maybe the money allocated for such managers can be used to further incentivise the low handicap players, to both teach their teams better and to work outside of the office.

The Hawthorne Effect

Creating this game between the agents means all agents and all teams are in a permanent state of observation, as they are all observing each other. And management and the bosses all pay attention to the stats gleamed from the game.

In the example given from David Hoffeld, the observation effect is more powerful than financial incentive, albeit this stat is surely overturned if we were taking about a lot of money. If we are talking about winning a week’s salary each day, then that’s a pretty big motivator.

So far, we have considered this as a laptop and mobile experience. Now, consider this:

Place large screen TV monitors on the walls at the offices, display the results of all the games clearly for all to see, and add some gongs and the big bell rings when particularly tricky deals are won.

This is UCS™ Hawthorne; ‘everyone is observing everyone else, every minute of every day.’

Before we get into the more advanced Villa Secrets model, which introduces significant financial incentives to winning the game (win the day), we will take a quick look at five important components that help make S-World UCS Hawthorne possible.

5 Important S-World UCS ™ Hawthorne Chapters

1. 1. Chapter 1

   2. S-Web CMS Software and Web Development Framework
   3. Network.villasecrets.com/the-secret/ch1/s-web-cms-framework-step-6-our-solution

   4. Chapter 6

   5. S-World CRM-Nudge-Ai
   6. Network.villasecrets.com/the-secret/ch6/crm-nudge-ai

   7. Chapter 7

   8. S-World TFS ‘Total Financial Systems’
   9. Network.villasecrets.com/the-secret/ch7/tfs-total-financial-system

   10. Chapter 9

   11. S-World CRM-CC ‘Company Controller’
   12. http://network.villasecrets.com/the-secret/ch9/crm-cc-the-company-controller

   13. Chapter 14

   14. S-World TBS ‘Total Business Systems’
       The dedicated chapter for the TBS™ is not currently online, but a good introduction to it is presented in Chapter 1.
   15. Network.villasecrets.com/the-secret/ch1/s-web-cms-framework-step-6-our-solution#s-world-TBS-total-business-systems

Chapter 1. The S-Web CMS Framework

S-Web CMS Software and Web Development Framework

S-Web is a web and software framework in which all web and software systems are part of the same framework. So, for instance, where one usually buys or licences CRMs (Customer Relationship Software), which needs to be connected to your website via a complex API, if one wishes the data to come straight from the website and online forms to the CRM. The S-Web CRM and website are the same thing, so no one needs to perform complex API development.

The more software one buys from different companies, the more complex it gets. You only need a few systems from a few different developers, and the law of limiting returns on what you can achieve from your system is severe.

Have a look at the following 2 graphics.

Below, we see the complexity of connecting a website to three different systems: a financial system, a CRM, and inventory connections.

Now, look at the S-Web Framework; in this example, accessing a price from the database. And as each part of the framework is just one hop away from the database of common items, access is easy.

In short, whilst it’s not completely impossible, it’s extremely hard to create the type of software that is described in S-World Villa Secrets, if one is using different systems from different developers pieced together.

Chapter 6. The S-World CRM-Nudge-Ai

Chapter 6. The S-World CRM-Nudge-Ai

The S-World CRM-Nudge-Ai is a design for an integrated CRM that pays careful attention to behavioral economics to sometimes steer and sometimes nudge agents in the right direction.

Created mobile first so agents have no need to be in the office and can continue working into the evening and at weekends. The Ai is a special feature which will become a system that, for the best part, can answer client’s enquires, ask questions, and present more options in real time. Then, as bespoke villas (properties not on inventory databases) return emails to say their property is or is not available, the new properties available are presented live as they come in. Where after, the client can start to negotiate with this and that villa owner.

By the time the human agents enter the conversation (assuming they were busy the time of enquiry), the deal could be well advanced and need only some finishing touches. And for the most part, the client would have had no idea that from the beginning (or sometimes the entire) of their customer journey that they were talking with an Ai. And further, that in the future, the Ai may well become a better agent than any human, and agents are removed from the process altogether to be replaced with concierge reps.

The Ai speeds up response time dramatically and can assist an agent to perform 2, maybe 3 times the amount of work they would be able to do without the system; and it teaches agents how to improve at sales via behavioral economics. For instance, ‘how many villas should an agent send?’ Well, Hoffeld’s ‘The Science of Selling’ suggests two is good. But after the 2 villas are sent, send a 3rd, which is not as good as 1 or 2, as this reinforces the client’s current first pick choice, as now in place of best of two, it’s the best of 3. Which makes sense to me, but experience also makes sense to send more like 10 in a technique I call ‘flushing out the completion.’ The logic being to send as ‘also-rans’ all the villas that a competitor would likely send but prioritise one or two.

The CRM-Nudge-Ai will first send just two options. But if the client does not reply or go on to the website, another 15 minutes later, a larger selection will be sent. And we will, of course, see over time what works best and look for idiosyncrasies such as different cultures having different preferences.

Note that this system is part built on S-World CDS ‘Content Delivery System’ technology, see Chapter 4. S-World CDS™.

Lastly, we look at the way we wish the Ai to work with the teams in the creation of a continual feedback loop.

The CRM-Nudge-Ai, assisted by a behavioural insights team, suggests the best path. But out in the real world, some things work, and some things don’t, and they call it experience. So, agents are (to a degree) given a free reign to experiment and do things that are ‘off script.’ And if this works out, we write it into the system for others to try. And if the new ‘idea’ works more often than not, it becomes a part of the Ai, and round and round it goes, always learning.

Chapter 7. The TFS™ – Total Financial System

S-World TFS ‘Total Financial Systems’

Whilst the UCS™ Hawthorne does not need the complete financial integration that the Villa Secrets design would desire, financial integration would be useful, as then one can immediately award points as soon as a client has made their payment, and that points can be relative to the amount that was paid.

We find a detailed critique of HMRC with solutions within this chapter at the following link:
Network.villasecrets.com/the-secret/ch7/tfs-total-financial-system#4-barriers-to-entry

When it comes to UCS™ Hawthorne for Villa Secrets, bank integration or access to banking data really does become very useful. For example, every booking made creates points score for the agent that made the booking and all involved in getting the villa online in the first place; from the photographer to the property manager, all get a few residual points each time a villa they helped with goes online.

Chapter 8. S-World CRM CC™ – Company Controller

S-World CRM-CC ‘Company Controller’

The property of the CRM CC™ that is essential to the UCS™ Hawthorne process is the creation of task lists, and it does so by assigning no more than 50% of ‘must complete’ tasks, such as a meeting with a client. Where after, the rest of the tasks are tasks that can be postponed without affecting the smooth running of the business.

This kind of set up is essential for users of the software to be able to extend meetings or spend more time on a specific urgent enquiry or other task. We can see this in the example below. At the end of the allotted time, the option to extend appears. And if extended, the ‘non-priority tasks’ (in blue) all move forwards.

Below, we see the ‘deal path’ for recruiting a mandate (see Chapter 3), which is the most important task. Currently, there are over 11 different deal stages to be performed by different members of the team overseen not by a manager but by the software.

Chapter 14. S-World TBS™ – Total Business Systems

All of the systems presented thus far and others including marketing and SEO are subsets of the ‘TBS™’ Total Business Software, Book 4 in the Angel Theory – Paradigm Shift range. I will demonstrate this system with the summary from Angel Theory – Paradigm Shift. Or see The TBS™ described on The Villa Secrets’ Secret.

Book 4. The S-World TBS ™

Part 1. Total Business Systems

Attempting a project like this without a system like the S-World TBS™ would be futile.

The S-World TBS™ is the software needed to run a global network, originally described for VIRGIN on 18th March 2011. It is M-System 1 and its functionality has been written within its own book ‘The Villa Secrets’ Secret.’ A summary of this book is found here: Network.villasecrets.com.

The TBS™ design is made of many components, from the Company Controller to the TFS™ (Total Financial System) to S-Web™, which creates extremely complex and sexy websites in record time. One critical part of its design is that all components from the website to the CRM to the accounting are created as one system, there can be no hopping from one item of software to another, as this is a chaotic way of programming, and has extreme laws of diminishing returns relative to its complexity.

This project is already in development, and already has a number of unique components that either make money, save money, or avoid landmines.

Digging further, we see that in place of the CRM software such as Salesforce which creates software for all business types, the TBS™ is to be created one industry niche at a time; this greatly simplifies the software and makes it much more user-friendly.

This niche by niche production system allows one to specialise in specifics; for instance, by asking 2017 Nobel Laureate Richard H. Thaler to plough his knowledge from behavioural economics into the various AIs, one case at a time.

In general, the behavioural economic position is that people are not perfect and do not always make the most rational decisions. The TBS™ recognises this and assists.

Boy, do I wish I had a TBS™ in 2002 when I created Cape Villas.com.

By coincidence at the point of writing (on the 26th April 2018), I have just arrived at section 8 in Thaler’s book ‘Misbehaving: The Making of Behavioral Economics’; where Thaler asks, ‘Could we use behavioural economics to make the world a better place?’ And the answer, in the content of Angel Theory and the TBS™, is ‘hell yeah.’ All improvements to the TBS™ will immediately help our prototype Villa Secrets Network; and in time, the thousands of business that will be created via Grand Networks.

As for making the world a better place, please spare some time to look at the 26 philanthropic and ecological projects that can be created as a consequence of the business network:

www.angeltheory.org/book3-14/ripple-effects-and-elephants-for-paul-g-allen

S-World UCS Hawthorne – Villa Secrets 2017

Below, we see the original 2017 plan.

Continuing from Chapter 9 and the S-World CRM-CC™ which creates sophisticated task planning software, the S-World UCS™ addition is to gamify the tasks. So, for each task completed, it gives a point’s score.

In the Villa Secrets ‘Scenario 7’ plan (Chapter 19), we have allocated significant funding for profit share which gets distributed to those who have accrued the most UCS points.

It’s a simple enough system to program; each task completed, each best STO or mandate secured, and each booking made has a points value. And as staff and management complete their tasks, they gain points. And each day, there is a points winner. And the points winner gets a percentage of profit share.

Created in this way, we can allow for a sales agent to bring in a big booking, or a property networker to land a mandate and receive a huge score on that day. But the next day, everyone starts from scratch. So, on any given day, anyone can win. And that’s important to the game play and will encourage staff to perform simple tasks such as increasing Facebook likes, or writing tweets in their spare time, as each action has small points score.

It also allows management to steer the team in the direction of gaining mandates and adding properties. As whoever adds a property, will see point wins every time that property is seen on the website, and many more points if its booked; and more still if it’s booked and it makes a lot of money.

This not only focuses staff on adding properties, but also on adding properties that will make money and adding them as well as can be done; as in doing so, they increase the chances of being seen and booked, and so more points, prizes, & profit share. (Prizes potentially coming in the form of handbags, glasses, perfume, and after shave from brands like Bulgari; in exchange for adverting space in the Villa Secrets Coffee Table Books from Chapter 18.)

This competition is more about motivating the support staff and management than the frontline sales and mandate staff, as such staff are already motivated with commission and in many cases, will be equity owners in the company itself.

There will be a great looking winner’s page that shows all points won each day and the daily top 3. And from that point, we can create weekly competitions, in both days won and total points, and monthly; and 3 monthly competitors, which will pay our significant bonuses, for winners.

This system turns the S-Web CMS Framework from simple and beautiful to ‘simple, beautiful, fun, and addictive.’ And as a bonus, as well as the motivation of being a daily or weekly winner, is that we create a very observed view point on each staff member on each day. And so, ‘The Hawthorne Effect’ kicks in improving overall performance from all team members.

S-World UCS Hawthorne – Villa Secrets 2018

Now that we understand the basics, let’s examine some of the more recent additions to the system. First, let’s bring back the leader board from the HMRC demonstration…

And let us recall that as it only 11.26 and only 2 and a half hours into the day, and due to their low handicaps the best players are at the bottom of the leader board.

Handicaps

Monica has won the day 42 times this year and has a handicap of zero. Handicaps are needed to enable the weakest or maybe just the newest members of the team to be able to compete and win. Let’s consider the current 2nd placer Mark Gosling. Mark has 20 wins under his belt. But the wins would not be wins if not for his handicap, based on golf, but changed simply to an amount of points given at the start of the day. For example, at 9 am when the day’s game begins, Mark would start with 75,000 points; whereas Monica, with a handicap of zero, starts at zero. And Richard, with a handicap of 8, would start at about 30,000.

As the day goes through, the low handicap players will (on average) collect more points and by the end of the day will win or be there or there about; unless they have a bad day or just bad luck, which happens. In this example, Mark Long is having a bad day.

Financial Reward

The big difference between this game and the game paid by HMRC is that wins see significant financial reward. Before we consider extra bonuses from sales made and mandates won, just the basic prize would be worth a week’s salary; or if on a low salary (maybe an intern, or low-basic sales person), the daily prize could be equal to two weeks salary.

Above, we see that the scoreboard (on the Big TV in the office, on desktop and staff mobiles) changes from handicap and wins to the amount won so far in a year. And note that this is based on Cape Town salaries. if in St Tropez, San Francisco, the Hamptons or any rich location where property sales can be ten times greater, the income from winning could be as much as ten times higher.

Let’s drill down to who is doing what for Villa Secrets Cape Town.

Ajanlekoko – Junior Bookings Agent
Mark Gosling – Concierge Officer, Hospitality Rep & Repeat Bookings Agent
Sarah Jones – Copywriter, Villa Grader & Blogger
Monica Belgrave – Photographer, Cameraman & Video Editor
Richard Okereke – Bookings Agent
Caihong Chan – Mandate Networker and Portfolio Manager
Mark Long – Junior Bookings Agent, S-World Systems Expert and Admin Officer
Monica Knowles – Mandate Networker and Real Estate Sales Agent

Of the above, three would be equity owners and have their own companies within the network and websites that they were in charge of.

In time, the jobs of Mark Gosling, Sarah Jones & Monica Belgrave would be performed by the S-World Film & Concierge company; but at first, all would work under the larger Villa Secrets umbrella.

In 2017, the source of prize funding was the profit share that had been factored into ‘Scenario 7,’ (from The Villa Secretes’ Secret – Chapter 19). However, now I think it would benefit by a percentage of sales agent commission and mandate networker income. Both were expected to make silly money, and sharing 25% of their income with the team via S-World UCS Hawthorne can make the entire team very grateful for every booking made and every mandate won. Each booking’s a winner for all the whole office and the big bell rings to signify each sale.

And whilst the real intricacies of the system should be worked out over time with different variables for different teams, including a control team with no UCS at all, I will provide some starter variables.

So, for instance, each time a sales person or mandate recruiter land a big deal, they will automatically win the day and win half the commission; which ends up with them making 75% of the commission. However, the 25% plus the rest of the day’s value is split between 2nd, 3rd and 4th place. A good villa booking would have a cash value from $25,000 to over $250,000, of which as much as 1% may end up in the prize pool equalling $250 to over $2,500 in prize money. With prizes over $500 seeing as many as 4 different support staff battling it out all evening, doing whatever tasks they can from the SCR-CC options in a bid to win the greater share.

Below, we see the different paths available to personnel to follow and score more points, albeit not all options will be available to all personnel.

End of Day Winners

Now, let us forward to the end of the day which closes out at 12p.m.

We can see that Richard Okereke has won with 437,391 points rewarding $1,823. Richard won today as a large booking deposit cleared in the bank.

Close on Richard’s heels is Caihong Chan with 379,724 points and $726. The reason for the lower pay out is that Caihong received a bonus for getting a property to an important mandate deal stage, but no money was actually made. Mandates are a ‘reward over time deal,’ in essence once secured, every time the mandated property is rented or sold, the team that secured it receive both financial and points rewards.

Given his score earlier in the day, the day’s big surprise is Mark Long, up from 7th to 3rd. Well actually, it’s not that surprising as a role of Mark’s is the ‘S-World Systems Expert and Admin Officer.’ And Mark likes that the systems have been demonstrated in many simulations, and Mark likes playing the simulations and seeing if he can make deals for his company. So, when 5 o’clock came, with a big bonus payment in the bag and the 3rd place spot worth $447, Mark just slipped into the S-World zone and pumped it until 12 p.m., by which point he had made up the points needed to get 3rd place.

He always does this on big deal days, and whilst some are a little perturbed, all are grateful for the additional business opportunities he creates. And in fairness, he’s actually a little addicted to the game and plays it often, just not in manic win mode, as was witnessed today.

Note that it is people like Mark who regularly play UCS™ simulations who assist in the creation of S-World BES ‘Behavioural Economic Systems’ and help to forge new networks. And when its complete, in S-World UCS Voyager (M-System 13), Mark will be playing an economic time travel game.

In 4th place, we see the team leader (the team leader is usually the lowest handicap player in the team). In this case, Monica Knowles, who has had a real nothing day, no new deals made, and the last thing she was going to do was play S-World UCS™ scenarios all evening to make her score up. In truth she should be last with no points at all if not for the mandates she has secured previously; 10 good mandates and one could almost give up work, as we remember each time any of the properties mandated by Monica are booked, she and the mandates team win points and cash.

In 5th place with 183,293 points and $172 is Ajanlekoko, who received most of his points as he was an assistant to Richard Okereke’s big deal that provided the big prize pot in the first place.

The slacking off algorithm

The last three places see only a token win; $50 for 6th, $25 for 7th, and nothing for last place.
Given that at a certain point in the day, even if like today it’s a bumper pay out, the lowest scoring personnel have a good idea that the game for them is over; and thereafter, work in a typically unenthusiastic way, we need to include a ‘slacking off algorithm.’ The system will monitor the day via the S-World CRM CC ‘Company Controller’ and if it detects a work rate less than 25% of the average work rate then a warning appears. And if ignored, one will receive negative points the following day.

The Joker

In the same vein as ‘the slacking off algorithm,’ in that it is an encouragement for those with low scores to apply effort, the Joker (which is new today 19th June 2018) is a new idea for someone with low points to play their ‘joker card,’ and be boosted to equal points with the top player. As always, only experiments can know the best rules to apply. But, as a starter, I think only 4 cards per year and only one card can be played in one month.

One also needs to consider when they can be played. For now, let’s say 4 p.m., and the card was played when a big booking was made, like today (but we will not show this option in this example). Once played, the current top scorer has equal points and can choose just to accept it and lose half their winnings, or they can play to win in a light way; by simply relaxing at home with new enquiries and live chat calls coming in via their mobile or laptop. An evening spent working on deals, taking new enquiries, and answering live chat will (in most cases) be enough to see of the Joker playing team member pushed into second.

Continuing with the wins description…

In 6th place with 164,026 points, we have Sarah Jones ‘Copywriter, Villa Grader & Blogger.’ Sarah makes most of her points via bookings and enquires on villas she wrote the article on, and it was a slow day.

In 7th place with 132,084 points, we have Monica Belgrave, who had a bad day as the weather was awful; so, 2 planned shoots were cancelled. And whilst she gets points every time she photographs or films a property, just like Sarah, none were booked today. However, if she were a couple of years into working with Villa Secrets, she will have hundreds of income sources.

In last place with 83,923 points is Mark Gosling, who had a bad day, and became the office joke for a while as all observed him lose; which gets us back nicely to the point of the game, so create an observed environment because we know that when people are observed, they work harder.

Lastly, note to self to have pictures reflect the score; so we would need a very sullen picture for Mark on this day.

UCS ™ Recruitment

This point links nicely to recruitment which is another S-World UCS™ quality.

When it comes to recruitment, if one was targeting a job that would pay $1,500 a month basic (remembering we are talking South African salaries), the package would be $750 basic plus whatever UCS™ Hawthorne winnings one made. Where after, 50% of all support staff salaries become part of the prize pool alongside the commission from bookings and mandates. And because of the extra income from the bookings and mandates, even a poor show would make more than the $1,500.

In my opinion and in general, the behavioural science backs this up. Very few people think of themselves as losers, and most have a far higher opinion of themselves than the average would suggest. And so given the opportunity to make $750 and significantly more in prizes; just by beating half the team, especially given that new to the game players start with a high handicap, I can see this system weed out any inherently lazy staff who are only working to pay the rent.

However, in my experience, there is sometimes a 2-month cooling off with personnel; when they can get into a comfort zone and are no longer so enthusiastic or productive. And for sure, in my experience of assigning and monitoring of tasks, without a system like the S-World CRM CC, it is an almost impossible job to get right all the time. And in some cases, just having half your team perform well is enough and is what one settles with.

Not with S-World UCS™ Hawthorne and the CRM CC, which collectively make each day a completion, and some days when big deals are done, there is a big competition going on.

I would say that S-World UCS™ Hawthorne, as presented, would more than double the output made by staff, add to that the systems like the CRM-Nudge-Ai, and one could see greater than double gains. Then add to that S-World VSN™ and S-World UCS™ Simulator and one can see all business that join the network leading each and every market and location it chooses to perform in.

So now, it’s over to Richard H. Thaler, the 2017 Nobel Prize winner. Currently (as of 12th June 2018), Professor Thaler has a giant equity bundle in the bag which, given the scale of Angel Theory – Paradigm Shift, is worth many fortunes.

However, other than the www.CapeVillas.com and www.VillaSecrets.com websites, until we get our first pick of Silicon Valley philanthropists assistance in developing the software and grow the network, there’s not a lot of spare cash around.

Fortunately, one thing that Thaler discusses in both ‘Misbehaving’ and ‘Nudge’ is a lack of business that are willing to let them experiment. For this reason, some of the best ‘high value’ behavioral economics comes from game shows such as ‘Deal or No Deal’; which, in itself, is not a very rounding medium, as one adds the variable that all contestants know they are being observed so may make different choices.

The Network plan for Villa Secrets (and other S-World ventures) is on part seen in Chapter 2 – ‘Network Strategy.’ The quick version is that in one location we find a master licensor, usually the leading real estate company who create a ‘Primary Network’; where after, they have 8 websites and make 8 companies. Then keeping 50% of each company, they either reward current staff or recruit new staff to run the 8 business, each staff member owning the other 50% of the business. This is very important as people work harder when they own something; and in an industry with high staff turnover, one gets to keep quality agents as opposed to see them starting a competing business and stealing clients (happens all the time).

The result is 8 different businesses, which would take about a year to found. Where after, the plan is to branch out into compilatory industries and niches to a set of 64 similar business in one prime location by the end of year 2. And running concurrently, I have a list of 300 prime locations where after there are tens of thousands of 2nd and 3rd tear locations; basically any town where real estate is sold for over $1million or more.

I’m not only happy for Thaler and other behavioral scientists to use this network as an experimental base. I fully believe that that is the best way to develop the system. And with bookings ranging from five thousand dollars to over a million, and properties selling from one million dollars to more than 100 million, the community can really test its ideas in a rich environment.

End of Chapter

More on S-World UCS™

To find more information on S-World UCS™, follow these links :

www.AngelTheory.org/book7/s-world-ucs-simulator-v1 (2018)
www.AngelTheory.org/book/1-3/the-s-world-ucs-m-systems (2017) (requires login)
Network.villasecrets.com/the-secret/ch10/s-world-ucs-tutorial-and-incentivization-game (2017)
Americanbutterfly.org/pt1/the-theory-of-every-business/ch8-s-world-universal-colonization-simulator (2012)

A more in-depth view will be presented in Angel Theory Book 7. And note that Books 2. Part 2. ‘A More Creative Capitalism’ and Book 3. The GDP Game are, in themselves, S-World UCS™ Simulations.

As a picture posits a thousand words, I present the M-Systems architecture. The UCS M-Systems are systems.

10. The ŔÉŚ Equation
11. QuESC ‘The Quantum Economic System Core’
12. S-World UCS™ ‘Universal Colonization Simulator’
13. S-World UCS™ Voyager
14. S-World UCS™ Angel Cities

Addendum 1

The S-World UCS ™ M-Systems

Paradigm Shift Book 1. M-Systems

“A Digital Theory of Everything”

By Nick Ray Ball 24th November 2017

PRESENTING

Chapter 3. The S-World UCS M-Systems

“You may not predict what an individual may do, but you can put in motion things that will move the masses in a direction that is desired, thus shaping if not predicting the future.” (Isaac Asimov)

Inspired by: Sienna Skye, Isaac Asimov, President Clinton, Garrett Lisi, Amanda Peet, James Gates, Leonard Susskind, Edward Witten, Stephen Hawking & Albert Einstein.

M-System 10 – The RES Equation – Revenue, Efficiency, Spin (2012 – 2016)

A powerful but simple economic equation that can only be fully effective within a digital economy. Take the initial income of a network (R), measure a company not from its profit alone but also the profit made from its expenses (E), optimize E, and Spin (increase the speed of all spending).

M-System 10 – The RES Equation – Financial Equivalence (2017)

Later, we will talk of S-World UCS MARS Resort 1. Fact or fiction remains to be seen, but on Mars we can implement the RES equation with a 100% Efficiency, which is to say every cent spent is accounted for; where after, we cut tax and spin, creating a supercharged economy unimaginable on earth. We call this ‘Financial Equivalence.’ Our inspiration: ‘the law of conservation of energy.’

M-System 11 – QuESC (The Quantum Economic System Core) (2012 – 2016)

The heart of the M-System’s design is founded on the notion by Hawking that ‘People are like Atoms,’ QuESC entangles us ‘the people’ with powerful predictive and logistic software within a circular butterfly effect, continually experimenting and improving upon all S-World systems.

M-System 12a – S-World UCS & Villa Mogul (2003 – 2012)

Originally imagined in 2003 as ‘Villa Mogul,’ the idea to create a management simulation game like Railway Tycoon. The ‘hook’ being that the game was based on a real business. By September 2012, it had developed into ‘TTOEB’ Chapter 8: S-World UCS – Universal Colonization Simulator.

M-System 12b – S-World UCS (September 2012 to 2017) (Connects all systems)

S-World UCS is a design for an MMO game that shows how to make a business and economic empire so rich, one could invest in super projects such as ‘African Rain’ or ‘Universal Colonization.’ The game teaches, simulates, and shines a light on the S-World Network’s future ambitions.

The Quantum M-Systems 13 and 14

Now, we arrive at arguably the main event. The S-World UCS quantum systems that create first an economic time machine and then logistical anchors into the future; from which we desire to shape the world in a direction that is desired, via simulation and then implementation, to create a better future for our children and children’s children.

In the now familiar system design below, we can (at the bottom of the graphic) see the quantum systems flying out of M-System 12. S-World UCS, scooping up Angel POP and the Angelverses on the way, delivering them full circle back to M-System 1. And as before, the rodeo starts again, but this time with greater momentum.

M-System 13 – Eureka!!! – S-World UCS Voyagers (September 2012)

The Eureka Moment arrived courtesy of Garrett Lisi’s ‘A Theory of Everything.’ In which Lisi presents his quantum coral analogy where “each individual was in many other locations experiencing them as separate individuals,” and the quantum mechanics mantra:

“Everything That Can Happen Does.”

This revelation arrived in the middle of writing the final American Butterfly ‘Theory of Every Business’ chapter ‘S-World UCS,’ soon after writing the S-World Virtual & Business Network chapter, in which the game sat within the virtual framework and had become entangled and indistinguishable from the conceptualised business network.

This consideration becoming the tipping point where a simulated game and business software became a form of economic time travel.

The consideration was that we would create a copy of the S-World UCS Network called ‘UCS Voyager’ and send it forwards in time at a speed twice our own. So that in 6 months of our time, the simulation would be a year ahead. And within, business owners, managers, staff, and gamers alike could conduct their own business simulations. Then, from all the possible outcomes choose which actions from the simulations to follow back in real time.

Businesses follow the wins, avoid the losses, and replay opportunities that showed potential in Voyagers 2, 3, 4…

What if you could look to the future and see millions of eventualities?
What if you could use this information to assist you today?

Welcome to S-World UCS

Welcome to your future

M-System 14 – Eureka2 – S-World UCS Angel Cities (2012 – 2017)

Angel Cities are 5 future simulations of the network from 2020 to 2080; first created as logistical support for UCS Voyagers, but have since become the key ingredient, subject of the movie framework, and the ‘why’ behind the entire project. In terms of M-theory and its component quantum mechanics, we respect Professor Richard Feynman’s alternative histories (sum over histories), which tells us that no unobserved system has a definite past or future.

“Quantum physics tells us that no matter how thorough our observations of the present, the (unobserved) past, like the future, is indefinite and exists only as a spectrum of possibilities.”

From ‘The Grand Design’ by Professors Stephen Hawking & Leonard Mlodinow

Shaping the Future

Set in the years 2048 and 2080, Angel Cities 4 and 5 are the nerve centre for the S-World network’s long-term ambitions, described as a set of ‘super projects.’ In this simulation, we work within the M-Systems framework to plan the best earth we can logistically create. And once the blueprint is set, we create paths back through Angel Cities 3, 2 and 1 so that each company, development, wonder, and ‘special project’ that we wish to exist in 2048 and later 2080 has a definite history back from the future to our time.

By planning our future in intricate detail and working in waves of probability, ripple & butterfly effects back through the future Angel Cities, we can control our destiny.

Angel City 5 (2080)

Angel City 5 is the last of the founding S-World Angel Cities set in 2080. Above, we see my darling daughter Sienna as herself and as an angel guiding us towards a better future, in keeping with the S-World mantra by professor Isaac Asimov…

“You may not predict what an individual may do, but you can put in motion things that will move the masses in a direction that is desired, thus shaping if not predicting the future.”

This future <> past relationship is in a constant superflux; but one thing is constant, our ambition, the set of ‘super projects’ that are to be achieved. In Game Theory and military strategy, they call it ‘Commander’s Intent’ (but instead of ‘take that hill, its ‘make them projects’), as commanders know that the best laid plans can quickly fall apart in battle. We must allow for every eventuality when creating the strings that lead to the creation of our ‘special projects.’

However, once enough strings and ripples have congregated, it gets easier. For example, the first of the 16 Super Projects: ‘Experience Africa’ is underway and has become entangled as Angel City 1.

Originally, this chapter led to a list of 16 projects I wished to be created. But since, I have created a chapter on how we can create these projects and more as a consequence of creating grand networks in locations of abject poverty.

See: Ripple Effects and Elephants for Paul G Allen

www.angeltheory.org/book3-14/ripple-effects-and-elephants-for-paul-g-allen

Step 5. A New Way

Index

10 Problems

10 New Way Solutions

Dixon & Adamson:

Now it’s time to show the customer the solution, a point by point view of the specific capabilities they would need to have to benefit from the opportunity to make money, save money & mitigate risk that you are presenting.

However, step 5 is about the solution, not about the supplier. It’s about showing customers how much better their lives would be if they just acted differently. You’re looking for your customer to say something like, ‘you’re right that makes total sense, that’s what we need to do’ or ‘that’s the kind of company I want us to be.’

10 Problems

So far, in this chapter, we have identified several problems. We shall begin by looking at them one by one and add some finer detail before presenting solutions.

1. There seems to be no web framework (at the scale we are working to) that can simply and easily create a complete website created by people with no knowledge of web design or programming.

2. Large custom-built websites often lack ‘Wow & Awe’ and rarely have the design standards of the most cutting-edge WordPress themes.

3. Most CMS components created for staff use are poorly designed and boring and as neuroscientist John Medina confirms: “When the brain deems something uninteresting, it will disengage from it.”

4. Websites created initially for desktop have different navigation and functionality to how it would be best to create a mobile website in the first place.

5. Smaller web developers, who live locally in your place of business, can copy your work and create competing business (as what has happened to us on 3 occasions).

6. Web development companies can look very good on line but perform terribly with CMSs and complex systems.

7. Changing web developers can be challenging, as more often than not, a new company will want to create a new website. In the same way they say in building; “it’s cheaper to build a new house than it is to renovate an old one.’ It’s easier for developers to create a new site than work with another developer’s code.

8. Software created initially for desktops needs a different workflow on mobile or when creating Apps.

9. All-purpose multi discipline software products such as Zoho
The Zoho system provides accounting, a website, a CMS, a CRM & other functions. But other than maybe their accounting, each system is always second best to industry leaders. Their websites are nowhere near the standard of WordPress, they have limited CRM functionality compared to Salesforce, and a CMS and workflow that is uninspired.

For more complex integration, one needs an expert to set it up, which can take months and cost $$$$; and connecting to an existing website requires a skilled PHP programmer to make the API.

10. Software, Websites, and the problem with APIs
Software products like Salesforce CRM and Sage Accounting need to be connected to a website’s database via an API; which requires specialist programming, is complicated, and is the wrong way to run a web-based company.

If your software is primarily there to support your website, then the software should be part of the website. The more APIs one creates for vital data or variables, the harder and more complicated a system becomes.

10 ‘New Way’ Solutions

We shall start with point 10, and work backwards presenting ‘a new way’ for each problem.

Problem 10. Software, Websites, and the problem with APIs

Below, we see an ultra-simplified way that one would connect 4 different systems together using APIs.

1. A CRM such as Salesforce that improves a sales person’s organization and communications such as Email.

2. Financial software such as Sage Accounting, which in this scenario we create as the master accounting tool and so responsible for price. Although any of these systems could be the master system for price, and that’s what makes it complicated. There is often a choice of many systems that could be the master for one variable or another, instead of one central database, one has four (or more given more separate software systems).

3. The website, which in this case we are attributing the initial enquiry data to.

4. Connections to PMSs (property management systems) that provide availability (the dates).

The problem with this picture is that there are many master controllers. If one were to add a new system, say marketing software by Marketo, it would need to fetch data from 4 different sources. And to get the most out of it, all the other systems would need to fetch data from it. The more systems you add, the more different master controllers of different data you have. There is no single place to connect to. Then if you wish to add concierge software such as Gold Key, the same problem again. And each time you add another system, it creates another layer of problems.

In addition, we need to remember we are looking at a very simple view; each system could have 1,000 different functions that all need to be recorded in one database table or another.

Programming in this way is greatly affected by the law of diminishing returns, as the more software and the more functions per software item, the more you add to the complexity and the less efficient it becomes. There is no magic wand, eventually it will become so complex that development will grind to a halt, as programmers spend most of their days trying to remember where this database table or that database table is, and which API is the master for which functions in the first place. Even the most organised of development teams can only get so far with this method of system architecture.

And of course, there is no way to make this work together on mobile at all. Not in a way that is useful. Instead, one would need to swop between the different software apps.

However, in 2015, in the early days of the S-Web framework, this was the way we were going to create the software, connecting over a dozen different pieces of software, seen here in over 5 hours of video:
http://network.villasecrets.com/business-plan/system-software-framework/divergent-crm-the-future-in-consumer-relationship-management

It’s not that this was a bad solution, it would be an awful lot better than no solution. But it’s light years away from ‘limited only by our imaginations.’

So, what is the solution?

“If your software is primarily to support your website, it needs to be a part of your website, contained within the web framework.”

This solution started to emerge in the Autumn of 2015, as a part of a deal on hiring another senior programmer, I was given an intern programmer for 6 months for free. And I experimented with the intern on integrating software directly into our website, specifically the magnificently complex ‘Magic Menus.’
http://network.villasecrets.com/business-plan/system-software-framework/magic-menus-intelligent-xml-sitemaps-cms-logic

Unfortunately, in the end, we did not use the system. But that’s not the point, the point is to work with an intern with a degree in computer science but no experiences on developing complex software including the multiple APIs needed. I needed a different way to work. I could not just give a list of functions, as that would create code that only he could fathom.

So, I created a new way of working with programmers that I called ‘CMS Logic,’ which demanded for every variable and database input. We would create a new CMS page, which I could use to adjust every action. But more importantly, it reminded me and the programmer where everything was in the first place; cos, believe me, by the time you have programme hundreds of variables into multiple APIs, it gets hard to remember where everything is, and is much harder for a senior programmer to oversee and add to when necessary.

Over time, ‘CMS Logic’ developed into the S-Web CMS Framework. At first, we improved the basic CMS function of adding a product. Then we thought, let’s do this to the homepage as well, and then we thought to create a CMS for every front-end page for the website; created in a simpler way than any other webpage building CMS we have seen, as instead of webpage elements, we created the CMS as a finished page, and just allowed users to swop text and pictures. Which basically meant that not only could a complete novice at web design create the whole website without assistance, they would do so at least 10 times faster than a trained WordPress or other web designer could.

We shall get back to this later…

Creating the system per ‘CMS Logic’ enabled us to start to add the pieces of software that we wanted from external systems directly into the S-Web Framework, and the original idea of having many different systems linking to our website via APIs turned into creating the functions we need from the software directly into our CMS Framework.

In the graphic below, which instead of the 4 systems seen in the previous example, we see 10 systems. If you compare the graphics, you can clearly see the unrivalled simplicity of all systems fetching from just the one database.

In this scenario, we are highlighting one of the database tables essential to all systems, ‘The Price,’ which is created by either the website CMS Framework or the PMS, and all other systems fetch from a single database, or actually 2. But the point is it’s easy to work out where the price is.

Only by working in this way can one create complex systems in a way that challenges the law of diminishing returns created from accessing vital data from multiple APIs, as one simply goes to the master database.

And remember, what we are seeing above is a very simplified view of just 10 systems and only one variable, ‘The Price.’ To imagine the scale of the entire system, a quote from Anthony Hopkins in Meet Joe Black comes to mind:

“Multiply it by infinity, and take it to the depth of forever, and you will still have barely a glimpse of what I’m talking about.”

One simply can’t begin to do this with a bunch of different system created by different teams, all threaded together by a bunch of APIs.

If one were to be objective however, or play devil’s advocate, one may hear the argument that creating the software from scratch (like Salesforce) needs tens or even hundreds of millions of dollars in R&D funding; and anything less would not be to the same standard. This assumption would be correct if we tried to make a CRM for everyone and every industry.

But as we are going industry by industry, we don’t need to recreate Salesforce. We only need CRM elements that are suitable for running a vacation rentals company. And in fact, because we are only focusing on this as a starting point, we can build a far superior CRM to Salesforce (suited to a specific industry niche) for a fraction of the price; as is explained soon in ‘Our Solution’ and in Chapter 14. S-World TBS™ (Total Business Systems).

Problem 9. All-purpose multi discipline software products such as Zoho

The Zoho system provides accounting, a website, a CMS, a CRM & other functions; but other than maybe their accounting, each system is always second best to industry leaders. Their websites are nowhere near the standard of WordPress. They have limited CRM functionality compared to Salesforce , and a CMS and workflow that is uninspired.

For more complex integration, one needs an expert to set it up, which can take months and cost $$$$; and connecting to existing websites require a skilled PHP programmer to make the API.

Solution: The Solution to the above is exactly the same as the solution to the last two points. One needed to create the software as a part of the web framework, not as separate items. But with added emphasis on each system, individually needing to be either equal to the next best thing or better than it, for the specific industry niche it has been created for.

Problem 8. Software created initially for desktops needs a different workflow on mobile or when creating Apps.

Solution: This one is simple. Don’t start with a design for desktop, start with a design for mobile, then adapt the desktop to the mobile. (This is known as ‘Mobile First’ design.)

Problem 7. Changing web developers can be challenging, more often than not, a new company will want to create a new website.

In the same way they say in building, “it’s cheaper to build a new house than it is to renovate an old one.” It’s easier for developers to create a new site than work with another developer’s code.

Solution: Don’t hire developers or use development companies, be part of a disruptive technology company and pay a reasonable 2.5% royalty for their continued support and development.

Problem 6. Web development companies can look very good online but perform terribly with CMSs and complex systems.

Solution: Make sure you see an example of a CMS or complex system created by a developer before trusting them. With the best will in the world, nowadays, it’s very simple to make a great looking WordPress website. But when it comes to creating custom CMSs and software, it’s a totally different ballgame.

Problem 5. Smaller web developers, who live locally in your place of business, can copy your work and create competing business (as what has happened to us on 3 occasions).

Solution: One can incentivise developers with equity or profit share, or one can outsource development to India, the Philippines, or Eastern Europe to get access to ‘pound for pound’ much better programmers and developers who are much more work focused. Alternatively, just work with a big and respected firm with a portfolio of work that is equal to your ambitions.

Problem 4. Websites created initially for desktop have different navigation and functionality to how it would be best to create a mobile website in the first place.

Solution: Same as point 9, work ‘Mobile First.’ Or create a separate App entirely, and work backwards from the App design to create it on mobile.

Problem 3. Most CMS components created for staff use are poorly designed and boring, and as neuroscientist John Medina confirms: “When the brain deems something uninteresting, it will disengage from it.”

Solution: Demand more from your web or software developers, ask that they treat the back-end systems of your website with the same level of design and functionality as front-end systems. One will be surprised just how far and how much you can do with a CMS if one treats it with the same respect given to the homepage.

Problem 2. Large custom-built websites often lack ‘Wow & Awe’ and rarely have the design standards of the most cutting-edge WordPress themes.

Solution: Again, demand more from web designers and developers. There is nothing that can be created in WordPress that can’t be created and improved upon in a custom web framework. Although it may take a couple of years to get it right.

Alternately, again go with a respected large web development firm who within their online portfolio has a website just like you want, who can show you a working CMS and can reassure you about their ability to create software within the website. But be prepared for a plus $1miiilion starting price for a project anywhere near what we are presenting.

However, by far, the most practical solution and definitely the most economic, is to take all that is ‘wow & awe’ about the most up to date cutting-edge WordPress designs and recraft it into a web framework that one can use again and again; creating each time a website with the looks, or even better looks than WordPress, but within a framework that is custom-built for the task, that can add software straight into the core of the system.

Problem 1. There seems to be no web framework at the scale we are working to that can simply and easily create a complete website, created by people with no knowledge of web design or programming.

Solution: One would need a completely different way of creating websites instead of working like WordPress where one has a theme, which one can customize, adding this widget and that widget to make up a page. And then adding complex plugins such as the Advanced Layer Slider seen here at the top of the page from our WordPress blog: http://blog.villasecrets.com/blog/stefan-antoni-cape-town-villas-in-south-africa.

Instead, one needs to really simplify the process. For a start, the idea of adding various elements, widgets, and plugins to a page has got to be thrown out the window. And in their place instead, just present the user with a page that is already complete, and simply get them to swop the text and pictures.

It’s that simple.

Of course, it not as versatile as WordPress, it does not have thousands of different themes, not yet, but this is part of the simplicity, not 10,000 themes, just a few for now. But, so what if your theme is better than all competitors, is a dream on mobile, and has all the connectivity advantages presented earlier enabling the simple creation of complex and original software?

I’m reminded of a quote from Chris Cox, the Facebook Chief Product Officer:

“We built a product that boiled down and removed all of those features, except for one thing, which was tagging it! So, we organised the photos on the web around people, and it completely changed the experience, “That was (click) just like that!”

It’s the same principle, you don’t need all that. So why make it a part of the framework? For non-designers, one only needs to see complete pages, then add or swop the content, then it’s simple. And not only can it be done by just about anyone, it can be done 10 times faster.

For instance, to create a website not for a vacation rental or estate agency but for a single property; if one already had the text and photos prepared, one could create a complete beautiful 20-page website for a standalone villa in just a handful of hours.

Try asking any WordPress developer how much of a website they could create in just a handful of hours?

And this point comes full circle to our mandate marketing initiative and why few can copy it; as for it to be effective, one has to make every dollar count, and spending $$$$ on this website and paying god knows how much to design coffee table books would just burn up the money. To Win in mandate and prestige marketing, you need to make your bucks count more than double, and this is just one of many advantages of thinking simple, clever, different, and always disruptive.

Step 1. The Warmer

Index

Step 1. The Warmer

Step 2: The Re-frame

Step 3: Rational Drowning

Step 4. Emotional Impact

Dixon & Adamson:

‘Build credibility and show your prospective partners you understand their challenges.
It’s an approach we have dubbed ‘hypothesis-based selling’ rather than leading with open ended questions about customer’s needs, instead lead with hypothesis about customer’s needs, informed by your own experience and research.’

With a touch of irony, in making the case for this action, the first research we shall present is from the CIO Executive Board. It’s a little old, but it makes the point.

In 2009, the CIO Executive Board found that only 26% of business leaders rated their IT departments as effective. And in a study of 5000 staff members: 76% of staff disagreed with the statement: “has their job performance improved due to a new system delivered by IT.”

Websites, Integrated Software, & ‘Wow & Awe’

When it comes to creating a new business or product line (in this example vacation rentals) in a market that is internet and affiliate driven; in most cases, the first thing most customers see (be them direct or trade) is one’s website. The more engaging and/ or inspiring your website, the more of an emotional connection you will make, and the more likely a customer is to enquire and book. We call this ‘Wow & Awe.’

Once a client has enquired, it is then down to the skills of sales representative to use the systems at their disposal to source and present stock (villas/exclusive use safaris, and private islands) to the client, and seek to make the booking.

Before going into further detail, we need to describe what our definition of a system is. In context o S-World Villa Secrets, a system can be software, a part of the website, a human resources (staffing), or anything that assist the sale process; even just ‘picking up the telephone,’ if this action is prompted by the software, or part of the operations manual.

Whatever systems one uses, one will almost always refer to a website. On the telephone, one will ask a client to look at pages ‘x, y, & z,’ whilst talking the client trough the options. By email, one will provide links to the website. CRM software (customer relationship management) should be intrinsically connected to the website, and your accountancy software should be equally connected.

Why should CRM & accountancy software connect to your website? Well, there are many reasons; but for one, there is no need for data inputting (from website to CRM or accounting software), and this adds a layer of security that greatly reduces errors and fraud, it saves staff time and enables one to do the job of many. In addition, if financial and CRM data is connected to your website, one can present the data to the client in real time in their client suite.

Getting back to the website itself & ‘Wow & Awe!’

If one was in the mood for a new website suited for a large vacation rentals or real estate company, one needs a website with a CMS (content management suite) that is not only simple for staff to use, but also it should be kind of fun, and (if possible) addictive. As in our 17 years of experience with various companies and websites from www.CapeVillas.com to www.ExperienceAfrica.com & www.Cape-Town-Luxury-Villas.com to www.VillaSecrets.com, we have found (in all cases) that a company that adds about 100 properties a year will double the performance (gross profit), compared to a company that only added a dozen or so properties. The more engaging, simple, and quick to use the CMS is; the more it will be used by staff.

As David Hoffeld presented in his book ‘The Science of Selling,’ one must avoid anything boring, as neuroscientist John Medina confirms: “When the brain deems something uninteresting, it will disengage from it.”

In short, Bored Clients don’t buy and Bored Staff don’t use…

Be it the CMS or the CRM, getting staff to use the systems in the first place is often a struggle, and chances are whoever created their CMS was not thinking about how to also make it fun and addictive, in many cases it’s as much as one could expect, for it to just be simple.

There are three types of CMS

1. CMSs like WordPress, which help web designers make very attractive smaller websites.
2. CMSs within bigger custom-made websites, so staff may add products to the website.
3. CMSs for creating mobile websites often used to upgrade older websites and legacy systems.

1. CMSs, like WordPress, which help web designer make smaller attractive websites.

In the case of WordPress, the CMS is very powerful and adaptable. And when using it, one can visually create just about anything, and it comes with thousands of different themes that create the most up to date look for a website. However, as the CMS for WordPress has been designed for any situation, it has a thousand functions that are not needed to add a property/product that can get in the way. And so, one needs to spend time teaching each staff member how to use it.

We did this a few years back when we created the Villa Secrets Blog, http://blog.villasecrets.com. If we look at an individual product page such as this one http://blog.villasecrets.com/african-safari/ulusaba-african-luxury-safari-in-sabi-sand, we can see it really does make the property look good, and these enhanced pages went down very well with clients, gaining an emotional ‘wow & awe!’ response every time.

The trouble was, the pages took a long time to make, even when one has all the photos and copy; to add all the photos and copy to the websites took over 90 minutes; and to make the image slider at the top, took over two hours for an experienced WordPress web designer. So, we could not add a page quickly and we could not add the image slider at all without assistance from an expert.

In addition, WordPress is not built for many products; unless you create your own theme, one can’t customize the file structure. It does not have a nice clear list of pages/properties added, and the way photos are stored is not ideal either. But the bigger problem was that despite having a standard MySQL database that one can fetch data from, when it came to connecting systems to WordPress and adding data to the website, one needed to create a dedicated plug in, each time, for each system which is a time-consuming specialist discipline.

And for these reasons, despite the great looks and versatility of WordPress for making smaller websites, blogs, or bespoke displays (if you are reading this on a website, then you are reading this on WordPress); it’s not a solution for creating larger websites that require multiple API and other web-based connections to software and systems. Unless one is happy to only use the systems that have already been created as plugins, which are an awful lot, but not nearly what we desired or needed.

Maybe in a few years, this may change if everyone makes a plugin for WordPress for every system and people made themes, specifically for bigger companies. But right now, it’s not the right tool.

2. CMSs within bigger custom-made websites, so staff may add products to the website.

With WordPress and similar CMS web solutions off the table, to add a simple to use CMS for staff to use, one needs to look at a custom-made website, or an adaptation of a custom website already created by a web developer.

In many cases for large custom-built websites, a web developer will use a web framework such as Zend. A web framework is designed to support the development of web applications and alleviate the overhead associated with common activities performed in web development. In other words, for items like CMSs, enquiry pages, currency convertors and other functions or pages; one customizes a page that has already been made within the framework. And whilst this is useful, the pages created are mostly uninspired and often boring, and in particular the CMS and other back end systems.

To customise the framework to create the product pages to the same degree of ‘wow & awe!’ as seen in our WordPress experiments, would take a long time, require various experts, and be expensive. In addition, if one wishes to add to the website, say for instance an ‘online magazine,’ or a system for agents to create dedicated webpages for clients, (particularly useful in the mobile world we live in.) The reliance on the web framework by the developer may hinder such progress. And of course, unlike WordPress, it’s completely impossible to add to the website design in any way, without the web developer.

Lastly, websites get old, both in look and code, and only the most successful companies can afford to completely overhaul the website every few years.

3. CMSs for creating Mobile websites

Lastly, in the world of web frameworks and CMSs, we have the increasing important mobile frameworks; and in this category, http://jquerymobile.com is the market leader and (like WordPress) is free to use.

One does not need such a framework for WordPress and other ‘all industry’ modern CMS web frameworks. But one does, if one needs to attach a quality mobile component to Zend and other frameworks, or custom-built websites that did not build for mobile, or legacy (old) websites that are all poor on mobile.

We tested JQueryMobile in 2015 and created a good looking mobile website for Villa Secrets. See http://m.villasecrets.com (only view on mobile, only 80% complete), but despite its good looks and simple functionality, working in this way was not ideal, as one effectively has two different websites. And when it comes to development of adding a new section such as the previously mentioned ‘online magazine,’ one needs to develop it two times; once for desktop and once for mobile, so increasing the cost and the chances of something going wrong. Plus, it’s poor SEO say Google, as a link to one page on desktop will not count to the same page on mobile and vice versa.

In Conclusion

To create a large-scale website with more than 100 products, including a custom-built attractive simple CMS that staff can use without need for training that has the very best design (as featured in the best WordPress themes) that can be connected via API to booking systems to provide online availability & booking, which also performs and gives ‘wow & awe’ across the variety of device sizes from desktop and hi-res laptops, to tablets and mobile; you need to hire a top web development company, who already have such websites in their portfolio, and that will cost a lot of money.

If only there was a system that has the best of all worlds, the Wow and Awe of WordPress, the simpler XML connectivity of custom websites, the mobile presence of JQueryMobile, with a CMS that was simple, kind of fun to use, and even addictive.

Step 2. The Reframe

Note: “Re-frame” should be “Reframe” in the image above.
Dixon & Adamson:

“Building off the challenges presented in step 1 introduce a new perspective that connects those challenges to a bigger opportunity than hadn’t been previously considered. This is not the place to be timid as the entire approach rests on your ability to surprise and make readers curious for more information.

However, the reframe is not about the incite itself, it’s just the headline, and like any good headline your goal is to catch your customer off guard with an unexpected viewpoint, to surprise them, make them curious and get them wanting to hear more. The response one is seeking is for the reader to say: ‘Huh, I’ve never thought about it that way before.”

Limited only by our imagination

At the end of the last step we postulated: If only there was a system that has the best of all worlds, the wow and awe of WordPress, the simpler XML connectivity of custom websites, the mobile presence of JQueryMobile, with a CMS that was simple, kind of fun to use, and even addictive.

By Creating a system that has the qualities that WordPress provides, but with a custom-made CMS that is not only simple, it’s fun to use and addictive; one can create a framework from which you can develop software into the system in a way that no other company has; and in a way, that’s infinity simpler than working with a handful of different systems by different developers connected together to create a complete solution. In development, simplicity is a very valuable commodity.

If one develops software inside the website (in the S-Web framework) so that the software was an extension of the website, one could build a CRM into it. If one could do that, one could automate the website, one could use the enquiry data and search criteria to create automatic communications with clients that looked and appeared human, and it could automatically email bespoke villas (properties not on property inventory systems), and as soon as the availability was confirmed it could send the client an update.

One could automatically create the perfect email for a client, and present it to agents who are out of the office or out of work hours, which would only take them a minute to check on their mobiles and send as a reply. We know from experience that agents that answer enquires and respond to communications out of work hours can double the sales figures of those that don’t. So, it’s no small point.

In fact, one could do just about anything, if there was just one system instead of many. If the software was a part of the web framework, one’s limitations are no longer technical in nature, rather they are only restricted by one’s imagination.

What if one could create a company controller within the CRM that organised the functions of all staff and management, and what if it could give a score so that each day, each team member had the opportunity to score more points and win the day.

What if… What if…

What if when one added a product to the CMS, it gave 10 points, and then bonus points each time someone viewed the page; and 100 points every time someone booked it, and those points were liked to profit-share, bonuses, and commission? This changes the dynamic of adding properties and searching for mandates, and brings the whole team on board, and focus them on finding properties that will make bookings, as each booking made adds points and so more profit share.

What if there was a management game running in the background that showed everyone’s score and a bunch of tutorials in how to increase it? That when acted upon improved the bottom line of the company in over 80 different ways?

Would that make the CMS fun?
Would that make it addictive?
Would that focus the team on tasks that were important to the bottom-line?

Dixon & Adamson:

So what’s next…

You have shown your customer a different way to think about websites CMSs and systems, now you have to show them, why it matters!

Step 3. Rational Drowning

Dixon & Adamson:

Next, show prospects the numbers behind why they should think differently.
Rational drowning is where you lay out the business case for why the reframe in step 2 is worth your customer time and attention.

In 2015, in a meeting with Rhino Africa (arguably the world’s No. 1 safari orientated tour operator), Rhino Africa revealed that their ROI (Return on Investment) from Google AdWords was over 600%. This was at first puzzling, as we fancied ourselves as masters of Google AdWords, but were only getting a 300% to 400% return. This puzzle was made the more perplexing due to greater completion for African Safaris vs Cape Town Villas.

However, it did not take long to work out why they were getting this 600% return, it was their systems, which they made mention cost more than $1million. It was Rhino Africa’s systems that turned what would have been a 300% return into 600%.

All one needs to do to move that 300% to 600% was either double the amount of enquires one received from their website adverting or double the amount of bookings made from each enquiry.

Or if one could both double the amount of enquires one received from their website and double the amount of bookings made from each enquiry, one would turn that 300% into 600% and then 1200% (a 400% net gain on the status quo).

Intrinsically linked into the S-Web CMS Framework is what we call ‘The TBS™’ (Total Business Systems); which is all the web components and all the software described in this book, as summarised in Chapter 14. This chapter provides over 80 separate systems, from CMS to CRM to staffing. For instance, a call centre and live chat; open 7 days a week, in European and US time zones, speaking different languages to assist the sales process, we believe may increase ROI as follows:

The figure on the left (120%) is the figure we feel can be achieved after a few years with an experienced 24/7/365 team. Whereas the figure on the right (36.1%) is what we expect at the end of phase 1.

Please note that 36.1% is a low estimate considering the huge advantages it would bring. We always err on the side of caution when making software ROI forecasts.

Next, we see the ROI that is expected from the web framework itself, again a low estimate, as this is in comparison to the prototypes www.capevilas.com and www.cape-town-luxury-villas.com, which are now both outdated and are just awful on mobile.

In total, there are currently 88 different single systems that combine to make the following:

Note: The Total I get when I calculate are “962.5” and “199.6”in the columns above.
This includes a significant overestimate of negative factors that could be created by competitors or others.

What this is telling us is that when working on lowest success probabilities, at the end of phase one, we should expect to increase ROI from online and other adverting by 209%; and that by the time, we have completed the entire system, it can create a much greater affect.

A 209% increase to an average 300% ROI from Google AdWords changes the return to 627% return; and as importantly, makes lower ROI adverting (such as advertising in Condé Nast Traveler) into profit making advertising choices.

Primary Network – Villa Rental Agency Returns

Scenario 7

In 2014, we launched the prototype for Villa Secrets www.cape-town-luxury-villas.com. And in 2015, using only Google AdWords, it created almost as much income as www.capevillas.com, which had 13 years of trading experience. Collectively, the duo of websites had only one rental mandate and no systems whatsoever. The combined GP (Gross Profit) was just over R 3 million / $230,000.

In 2016, we created 6 forecasting scenarios that used different strategies. And as we did, the Villa Secrets business plan became more detailed, to the point where it is now longer than the average novel.

In Chapter 18, we present ‘Scenario 7’ and the first phase of the Villa Secrets primary network offer which adds 7 more websites; all of which will use the new ‘wow and awe’ web framework. In addition, we desire the managing company to secure 6 exclusive rental mandates each year (see Chapter 3) and we have the S-World TBS™ systems improving all returns by up to 209%.

Phase one is to achieve R10 million / $765,000, and given all the above, that’s a simple enough statistic to agree upon; given that just two sites with one mandate and no systems made R3million / $230,000. Then, 9 agency websites, 6 mandates each with their own website and dedicated marketing, multiplied by the 209% worth of systems.

In Scenario 7- stage 1, shareholder profit is estimated a R2.7million / $200,000. However, it is recommended that all profit in phase one be used for profit share and mandate marketing, as the point of phase one is to arrive at stage two as quickly and efficiently as possible.

By rights, in stage 2, we should increase the S-World TBS™ profit multiplier from 209% as more systems will be completed, improved upon, or added to. However, as we really did not need to, we just left it at 209%. But even with this limitation, when including another 6 rental mandates, stage 2 gross profit (estimated for 2020) is just shy of R40million / $3million, with shareholder profit before profit share at R14million / $1million. At which point, the division becomes worthy of the attention of the real estate companies C-Suite officers.

The complete cost for the primary networks agency websites and all software systems (Chapter 20) is R2.2million / $167,772, plus a 12.5% of GP (equivalent to a 2.5% franchise fee) ongoing development contribution. With only 25% R550,000 / $41,943 payable on signing, with the balance paid in 12 discrete steps over the following 18 months, each step liked to a website or software system being completed per the development timetable.

Skipping past stage one, as profit is desired to be reinvested, if we compare the cost of the primary network R2.2million / $167,000 to the stage two, Scenario 7 projection of R14million / $1million, we have an ROI (Return on Investment) of 670%.

To put that into perspective…

If one were to put $167,000 in a US or UK bank, one would receive between 1% and 2% interest each year.
A good return from investing in the stock market is 10% per year.
A fantastic return from the stock market is 18%.
Villa Secrets Primary Network 670%.

Sounds too good to be true? Well, really, that’s the point. That’s what disruptive change is all about. So long as the real estate agent can bring in the 6 rental mandates each year, which given we present 19 different ways to acquire mandates, and most agents at the real estate company will likely know at least one prospect, is more than achievable. In fact, it could be doubled, or even trebled.

However, another way to look at it is not that one is making a 670% return, but instead that one is making a reasonable return on an opportunity that should cost over $1million in the first place. So, instead of a 670% return, one is initially receiving a 670% discount. (See Chapter 20 for valuations of the true value of the primary network opportunity.)

Chapter 19. Realtor Systems and Wins

Unlike the 7 villa rental forecasting scenarios which are based on decades of expertise, various prototypes with various managers; when it comes to for sale mandates, we do not have a crystal ball. But we can be sure that most rental mandates will turn into sale mandates for the following reasons, and then apply a formula that is relative to how many mandates the entire local network is estimated to gain.

Villa Secrets has a unique ‘rental mandate turns to sale’ commission system, where over half of the rental commission is used for what we call ‘Mandate Marketing’ and half of that is spent on ‘Prestige Marketing’; which puts the villa in magazines like Condé Nast Traveler and Vogue, and prime placement in the Villa Secrets Coffee Table books to be compiled with other items into estate agents pack’s, for use if and when the owner wishes to sell, or if a high roller buyer is interested and offers top dollar for a villa that is for sale, but only at the right price (investment properties).

In Chapter 19, we break into game theory to see how this will impact real estate agents. Below, we see a game we are developing. The starting conditions are that in Cape Town, including the Atlantic Seaboard, City, Waterfront, Constantia, and surrounds that 100 villas are sold a year for over $2million. And that there are 3 market leaders that account for 50% of sales, and a collection of about 7 other companies that account for the other 50%.

The Estate Agent’s Game 1 – Capture Market Share

Above, we zoom ahead to 2021 and assume Villa Secrets has delivered on its network ambition, and a large network of companies and individuals have collectively amassed 100 villa rental mandates, of which fifteen are sold via the Villa Secrets partnered real estate agency (the primary network).

In this scenario, we deduct the 15% loss in market share evenly across all agencies, so the three big agency decrease their market share by 2.5% each; which is the cost of not joining the network. There is a dominant strategy for only one real estate agency to join the network; and in that case, it would increase its market share by 12.5%, increasing their sales of villas over $2million from 17 to 29, and an increase of 75% to the agency itself.
If two agencies joined, both would increase market share by 5 villas over $2million from 17 to 22, an increase of 30% per agency.

This would be a great result for any real estate agent, a 30% or 75% increase in sales of the most expensive properties. And as success breeds success, this figure could increase as owners come to Villa Secrets ‘primary network,’ not just to rent but also to sell.

Another more ambitious game is created that includes the factor of ‘Jet Set’ marketing; which seeks to connect with private islands, exclusive safaris, and other expensive properties to bring more Jet Set clients to Cape Town in the first place, not taking market share but increasing it.

If we get this right and double the amount of Jet Set clients, we expect a far higher return for our partner real estate agents, and a Nash Equilibrium (a win/win) for all real estate agents; regardless of whether they are in the network or not, albeit (as we can see) the benefits of this scenario are colossal for the estate agency or agencies that join the network.

For more details, see Chapter 19.

Step 4. Emotional Impact

Dixon & Adamson:

Emotional impact is all about making absolutely sure your customer sees themselves in the story you are telling. Now you’ve got to make it personal, this is where story telling really comes into play. As the name implies, emotional impact isn’t about the numbers, it’s about the narrative, you’ve got to paint a picture of how you and other companies went down a painful path that the customer will recognize.

Later, in this book, we present two emotional impact stories; which, for now, we shall just touch on before presenting our ‘emotional impact’ narrative that is specifically relative to the S-Web CMS framework.

1. Key Staff Leaving

In Chapter 2, we present an ‘emotional impact’ narrative and solution to the problem of losing one’s best agents; who either start their own competing business or join other competing firms, often taking with them one’s database of inventory and client list, and always losing the company money.

This story should feel immediately failure to estate agencies and rental agencies alike. Indeed, this is a familiar story in most businesses, which we counter by including key staff as shareholders in one or more of the primary network’s 8 agency websites, or by recruiting staff to the network as individual network/website owners. This not only avoids the temptation to start their own businesses as they already own the business, it also is a primary building block for individuals to reach their potential, as everyone works harder when they are running their own business and not working for the man (or woman).

In addition, the systems are created to assist one staff member to the job of three; including answering the most important enquiries and replying to the most important conversations, out of hours assisted by the Nudge Ai, are an equally good reason for personnel to stay put; as if they leave, they will no longer have access to the software, and will be less productive.

2. Accounting and Admin Nightmares

In Chapter 6. S-World TFS™ (Total Financial Systems), we present a harrowing tale of 8 years of financial inefficiency created by 6 financial managers, accountants, and bookkeepers; who should have known better, but did not, which lost or cost CapeVillas.com over R6million / $460,000. Which was not only a huge amount of money to lose, it was also a huge amount of money that could have been invested into the business to create wins.

This accounting nightmare was centralised around human error and the Pastel financial software that, come rain or shine, was completely unfit for purpose.

For this reason, in 2010 after the 5th biggest firm in South Africa ‘BDO’ has make a R2million / $150,000 VAT error (not in our favour) and had cost another R2million / $150,000 in billable hours and associated expenses, I decided I simply could not carry on with the status quo and I needed to create our own financial systems; which alongside the affiliate web site idea gained from working with Sotheby’s turned into the first S-World business plan in February 2011, which over the past 6 years has developed into the plans we are presenting right now.

3. Web Developer Frustrations

To refocus this chapter to the S-Web CMS Framework, we shall share the frustrations we had with web and database developers, that led me (in 2013) to doing it myself. I was competent with design, web design, system design, Flash and HTML; but my database and software development skills needed to be learned almost from scratch.

But before we begin, let’s hear once more the supporting data from the CIO executive board:

Only 26% of business leaders rate their IT departments as effective.
76% of staff disagreed with the statement: “Their job performance improved due to a new system delivered by IT.”

In 1999 after 10 years working as a Cubase network programmer, like many in my profession I (Nick Ray Ball), swopped to web design and development, and became an immediate expert at a new image rich web design system called Flash; as it was timeline based and very similar to Cubase. In the year 2000, after attending a lecture by Macromedia on Flash in London, I set myself the goal of making a virtual tour from it. And by 2002, I had done so, and we were the first company in the world to do so.

During this time, I had emigrated from London to Cape Town and created the web development company ‘Cape Go.’ However, the web was only taking shape in Cape Town and no matter how good our work was, it was difficult to get clients. So, we started developing websites for ourselves and running the business.

In those early days, 2000 to 2003, I created the CapeVillas.com website and others in Dreamweaver (HTML) and Flash, which we were more than competent in. But in 2003 as CapeVillas.com became a success, the need arose to build a database driven CMS (content management suite) for Cape Villas (as it was becoming labour intensive making each page individually and updating pricing) was also a problem. Fortunately, our first venture into database driven web development was very painless and free, as a local database web development company loved our website and in particular our virtual tours and offered to add their CMS to our website for free as a portfolio exercise for them.

Soon after, we swopped to another company to build further functionality and this was also a smooth process. And by 2005, we had added a property management system and other software components created as part of the CapeVillas.com website. But in about 2007, the company we used split up for some reason, and we needed to find new database developers. We went to the companies we knew had a good reputation, but they pronounced that the PHP code in our website was old and messy, and needed to be completely re-written; and in fact, we needed a completely new website.

Whether this was because they were trying to up-sell us, or whether they just weren’t that good, I will never know. But it happened more than once. Indeed, our previous developers had been trying to get us to replace our website with a new one for years. What I do know now is that we never did replace the website, and my current programmers don’t have any problem working with it. Albeit it definitely needs an update from a visual perspective and were gearing up to do that.

Not being able to find a development company who could or would work on CapeVillas.com turned out to be a very expensive lesson; as with no database developers, we could not continue to improve the system. And in 2010, when a competitor brought out their version of a property management system for public use, we were no longer the leaders in vacation rental technology, and they forged ahead, whilst we did not.

However, this is not the story I am telling… Going back to 2009, two years had passed without development. But in those years, we created The Cape Villas Magazine and distributed it with Condé Nast Traveler to great acclaim; seeing big brands like Bulgari ask to sponsor the follow up and two of the estate agents we are currently considering to operate the Villa Secrets ‘primary network’ (Seeff & Sotheby’s) asked us to assist their set up of villa rental departments, on a profit share basis.

Regarding Bulgari and the follow up publication, we worked out that we would make better ROI from our publishing and distribution if we opened up our market, instead of luxury villas in Cape Town, luxury properties across Africa. Which lead to the creation of ExperienceAfrica.com, and while we could not develop CapeVillas.com, we found a developer who could create the Experience Africa website the way we wanted, so we started to create that website and brand.

Our financial manager at the time, who had come to us a year before from a company 20 times our size, had informed me that we would have over R1million / $75,000 in the bank if all debits were paid and all credits received. So, I went ahead with the development of the website and the brand, including a new shop, fixtures and fittings, and a department of 4 very capable personnel, plus a dedicated Flash/graphics-based web designer.

Initially, the new website was being developed per my designs and specifications, and we spent about 6 months getting it looking really good, but I did not give specifications for the CMS. My thinking was the CapeVillas.com CMS that was created in 1999 worked well, and I just presumed that 10 years on, a professional web developer would be able to improve upon it.

Big mistake!

By the time, we had done the product research (picked our favourite 50 or so safaris, resorts, honeymoon villas etc. and made the websites UI [User Interphase/what the public see]) and opened the new store. We started having problems with the CMS. At first, I just thought it was teething problems. But as time passed, things did not get better. And every other day, another staff member would say that he/she added a property, but then it disappeared, or it would show an error signal.

It was such a shame as the design was awesome, and the big pictures and Flash animations at the top of each products page made its product pages superior to all competitors. In fact, the design was so good that Sotheby’s Realty Cape Town entered into profit share venture with us and we created them a duplicate version of the website called AfricanConsierge.com. And this was the bright idea that this book is an extension of, a website that could be recreated again and again for many companies on a commission share basis.

But alas, the developers never did fix the bugs and neither our staff or the staff at Sotheby’s could add properties. And as money was getting tight, I literally had to scrap the entire brand, let all the staff go; and a year later, I scrapped the entire website. Total losses over R1million when we include the shop and staff.

Was it foolish hiring the staff and shop before the website was live? Sure, it was. But as far as everyone could see, it was a great website, and I really did not anticipate that a CMS would be such a problem.

As it turned out, the problem was not the programmer, it was with the developer who would not let us speak to the programmer for reasons I put down to him, worrying we would offer him a job I guess. But without access to the programmer and working through a middle man who did not really understand the process, made it impossible to fix the bugs in the system.

To make matters worse, the developer eventually worked it out, and brought out a competing villas website, and teamed up with one of our best sales people to start a rival business; that to this day is still a competitor.

This was not the only incident of this kind. In 2003, we lost our lead developer to a real estate company who had at first asked to work with us. Working under the radar, he quit our company to work for theirs and created a website for them including all the villas we had fought long and hard to identify; that, at the time, became our biggest competitor and is still competing today.

And again in 2010, our web designer was lured to another company and took with him our entire portfolio of photographs and properties list, and created another rival site, albeit this one never got off the ground.

In conclusion

At the end of 2010, what with the continued problem of losing our best staff, the ridiculous and reckless behaviour of accountants and their chosen software that was not fit for purpose, combined with both web developers failing us and/or starting new companies in competition to us,; it was time for a change. And so, I retired from the front line of Cape Villas and decided I needed to go back to my programming and web design roots, create a system that elevated all the problems mentioned so far, that contained a CRM (customer relationship management), financial software and connections to PMSs (property management systems) and GDSs (global distribution systems), all as one system.

In March 2011, the following plan was created initially for VIRGIN
www.s-world.biz/TST/The_Virgin_Business_plan_in_Retrospect.htm. And since that day, we have worked it and got better at it. First, working out the network strategy, incorporated some highly advanced mathematics to create the ‘big picture’ of how we would like the international network to be, then developing prototype web CMS Framework, then adding the PMSs & GDS, connectivity and a JQueryMobile website, then turning the whole project on its head, working Mobile First. Then, turning the project on its head again by creating a WordPress hybrid website. Then removing the WordPress and we built the software straight into the system. Until now, we are designing systems that are unique, ahead of their time, and completely disruptive.

A disruptive company is typically a company that spends more time creating a product than its competitors, that is so advanced that it disrupts the market, carving out giant chunks of market share along the way. For example, Facebook, Airbnb, or Uber.

We now call this ‘big picture’ Angel Theory (as it also does a lot of good for us and our environment) Paradigm Shift, as that the complex mathematics and system design is set to create a Paradigm Shift in economics (see www.angeltheory.org/paradigm-shift-quick-summary-v1).

Chapter 24. Be Easy to Buy From

From a eureka moment in 2009, eight years of refinement and development makes not just a great value product but also a simple product; that does not create disruption within the investing real estate agencies organization, is fantastically low risk, and extremely easy to buy.