Dec 12

It’s tough looking at things objectively because it just doesn’t evoke the passion, the rhetoric or the sweat that seems to quench our daily thirst for opinion. One of the reasons I like Color by numbersFacebook is that it’s a great platform for people to let us know how they feel (non objectively) about things and ensures us a great reservoir of that passion, rhetoric and sweat. I very much enjoy diverse views, something that tends to drive my wife crazy, the opinionated person that she is. “My dear,” I told her, “because I have varied views does not imply I lack strong opinions or convictions. If I’m going to jump on a soap box, I better understand all sides.”  It should be no surprise, then, that the healthcare debate is proving to be one of those defining moments, one that has generated a flood of opinion all the way from Facebook to my home.

HealthcareBillOver the past several months, I spent time reviewing the proposed healthcare legislation, read editorial pieces on both sides of the issue, spoke with doctors and providers, and exchanged ideas with colleagues having diverse opinions. Have I formulated an opinion on healthcare reform? No – and that’s really starting to bother me. Why? Because I’ve invested so much time trying to figure out this societal predicament. Do I think healthcare is broken? Absolutely. The issue, though, is not whether we have to fix it, but rather the approach we take to doing so.

This is where I have an issue with both sides (are there really just two?) in the debate. Why? Because we have no way to measure spending or gauge the current performance of our healthcare system. We have neither quantified healthcare nor have we put together actionable data. Some people will jump up and down over this assertion, but there is no common baseline or framework sufficient for quantitative analysis. Some will argue that looking at things this way – objectively – will risk lives and depersonalize care.  Time for a strong opinion:

Being able to sufficiently quantify healthcare will allow us to make informed decisions, to allocate resources much more efficiently and, ultimately, to provide better care and save lives.

One of my friends challenged my views on this concept, claiming “Healthcare is too complicated to fix and it won’t fit into one of your mathematical equations, Rob.” That’s the problem. How can we possibly fix a system we can’t measure? We won’t know if it’s fixed or where it’s broken!

Our efforts in healthcare should be directed at getting the numbers in place and baselines established – and doing this fast. In the meantime, the debate train moves on. From yesterday’s Wall Street Journal on Olympia Snowe, the senior United States Senator from Maine:

Mrs. Snowe began by noting that this year’s health debate is “one of the most complex and intricate undertakings the Congress has ever confronted,” and that she, too, has devoted much of her three-decade political career to promoting cheaper, better quality insurance. “But it must be done in an effective, common-sense and bipartisan way,” she cautioned.

Real numbers will help simplify the decision, promote bipartisanship, and get public support.  Make all the numbers public. There’s a valuable lesson from the open source world in technology: when all the information is publicly accessible, more people will look at it, analyze it and make it actionable.  Let’s give the numbers to a couple hundred million people and we’ll get some great results. Remember Color by Numbers? It was – for me at least – a lot easier to work from than a blank canvas.

Rob Ciampa

Tagged with:
Dec 05

A couple of weeks ago, I attended the Deutsche Bank Fintech 2009 Senior Executive Forum at the Time Warner Conference Center in New York. The event consisted of a number of outstanding and well-organized panels that addressed critical issues such as market expansion and global competition. Like other engaging affairs, the interaction off the dais was as important as the communication on it. Having been through a recent funding round and not pitching for money, I was able to have a more interactive and balanced session with some great venture capitalists and other private equity leaders.

Guy Fawkes and Gunpowder Conspirators

Guy Fawkes and the Gunpowder Conspirators

Nearly all the dialog I had with the financiers turned to the concept of “dry powder,” an interesting and well-known metaphor for uninvested capital. The irony is that there are many emerging firms searching for money – looking for powder – and unable to get it. Is there a disconnect? Yes and no. Yes, because investment criteria are different and, in most cases, more exacting and stringent. No, because the model – as always – must address two markets: the one in which you’re trying to build a business and the other in which you’re seeking to raise money. Interestingly, elements of Sequoia Capital’sPresentation of Doom” still ring true, but viewed in a different light it’s just common sense.

Entrepreneurship 101 right? Yes, but…we remain in a bit of a broader technology market malaise. Fortunately, because I lean toward optimism, there are encouraging signs, as indicated by a recent piece in the Merc. When conditions improve – and they will – the success of the outcome will be directly correlated to the dryness of the powder. Right now, that powder may be just a bit damp.

Rob Ciampa

Tagged with:
preload preload preload