Tuesday, May 31, 2011

Why Coaching? A Leadership Perspective

Competitive advantage through people has always been a goal of modern leadership and becomes more critical as product and price differentiation narrow.  Traditionally, the role of creating more skilful and focused people has been given to HR and training.

Research tells us that classroom training (whether it be real or virtual) is only appropriate for 15% of development needs  (Rummler 1995).  Not only does this cause concern about the use and abuse of training events, it also raises the tantalising question of what is appropriate if training is not?

The broad answer is workplace rather than classroom development.  To explore this more closely, the researchers seem to indicate that regular interaction, rather than one off events, leads to enhanced skills and increased performance.

The diagramme above has been created as a result of applying a range of performance improvement techniques to varying organisations over a 20-year period (www.prosell.com).  It indicates that with a “clean sheet of paper” (i.e. no preconceptions or bad habits, as with new starters or new roles), people can more easily accept, in a training environment, that specific skills and approaches are correct and need to be mastered.

With individuals that already have a perception of what is right and wrong and in some cases extremely entrenched opinions, a different approach needs to be used.  Not only do we need to explain why new skills are needed, we also need to sensitively reassure people that they and their (old) skills are not redundant, but need to be adapted and updated.  If we are attempting to change behaviour, as opposed to initiating it, coaching is shown to be a more effective tool.

In order to develop further the rationale for this model and the positioning of coaching, we need to be familiar with the relationship between management intervention and performance/behaviour change.

The US organisation Technikron conducted research into the level of intervention needed to drive behavioural change.  (Technikron work with performance measurement and feedback systems in contact centres.  The research was conducted in 1997.)

They concluded that to change behaviour the manager needed to interact with the individual, on average, 2-3 times a week.  This raises serious concerns about the effectiveness of more traditional performance management tools, such as annual appraisal and performance reviews (Appraisals – A Good Investment?  Prosell Research, 1993).

Whereas we accept that most good managers talk to their people more often than just at appraisal time, our experience tells us that this is not a series of regular interactions which are carefully planned to reinforce changes in behaviour and provide input (coaching), when needed.

Coaching also has greater impact in terms of immediacy of resolution and as such, should be a primary development tool.

Danger of re-training 

There seems to be growing evidence that organisations accept that people will go through the same training (level and subject matter) at regular intervals (apart from compliance training).  This implies a number of unhealthy traits within the organisation:

  • there is no consequence for not applying skills in the workplace; and

Once this becomes accepted practice it also has an impact on the quality of training delivered.  If people are not measured in their application of what they have learnt, then the training does not need to ensure comprehension, let alone competence.

The other major implication is centred on who is nominated for training in the first place.  Research suggests that the primary reason for training is performance discrepancy or skill weakness.  Those with skill weaknesses or areas for obvious development are not those who implement training well and willingly in the workplace.  There is clear evidence that, “those who need it most use it least” (Dettaman and Steinberg, 1993).

Questions must therefore, be raised about both the economics of re-training and the validity of the practice.

The Skill Development model and its implications

The model opposite shows that individuals go through three stages when acquiring skills.  Typically, the first and last stages, those of awareness and application, are workplace activities and in the main, management responsibilities.

The two figures on the left hand side of the model above illustrate important points.  The 35%-40% marks the point where people end up after training (on a competence scale of 1%–100%).  This means that the majority of the acquisition of competence takes place in the workplace.

This is broadly accepted within the training fraternity.  Whereas training allows people to explore new ways of doing things and hopefully exposes them to “best practice”, it does not create experts.

If expertise is acquired in the workplace and not the classroom, then we must accept that specific things need to happen in the workplace.  Primarily, people need to be coached and given feedback on their competence.

Our 20 years experience tells us that, proportionately, the following time and effort needs to be expended to successfully take an individual through the skill development process:

  • Awareness     25%
  • Practice         35%
  • Application     40%

The second figure (5%-9%) is where the research tells us people end up if nothing is done in the application phase.  This is typically between unconscious incompetence and conscious incompetence.  This typically happens with 4 – 5 months.  This is a startling figure and perhaps explains why many people in business have a cynical view of the value of training.  It seems they are right.  Without specific application strategies, companies are wasting between 91 and 95 cents of every dollar they spend on training.

Practice and Feedback

It is commonly understood that people develop skills through one primary mechanism, practice and feedback.  Conventional training tends to be squeezed for time and it is inevitably the practice sessions that are sacrificed.  Too much content and not enough practice creates uncertainty in application, through issues of confidence and competence.  If a person cannot, through practice, feedback and practice again, achieve a point of competence (“I have practiced this to the point where I feel competent to do it in the workplace”), they have no confidence in applying skills.  The implications of this are that many people (over 75% in one study) actually avoid applying skills trained because they have no confidence that they will be effective.  Those organisations that use coaching as a development tool do not seem to face these issues.

Near and Far Learning

Noted behavioural scientists, Detterman and Steinberg, published a book in 1996 entitled Transfer on Trial.  The book focused on the issue of learning transfer (the measurable transfer of learning and skills from classroom to workplace).  Their research had concluded that 86% of training did not transfer effectively.  There were a variety of reasons for this – measurement, support, feedback (all key components of coaching).  They also spoke about the difference between near and far learning as a critical issue.

Far learning means completing exercises which are broad, generic and explore our understanding of principles.  Detterman and Steinberg’s research concluded that people found it difficult to relate broad principles to specific work situations – and as a result did not apply skills effectively.

Near learning produces significantly better results.  Near learning is practicing the specific skills needed, through customised and intelligently constructed exercises, so that the individual is practicing exactly what they are being asked to do in the workplace.  Coaching is the ultimate example of near learning – it says to the individual, “We are going to practice this until you feel you are doing it effectively and then evaluate as you do it live”.  As a result it is significantly more effective in ensuring learning transfer.

Performance Management and Coaching

Performance management practices (appraisal, review, goal setting, etc) all become uncomfortable, bureaucratic exercises if those responsible cannot add value and direction through coaching.  If neither party feels value is being added by the other, then both parties view the process as lacking in worth and tend to avoid it.

This also is reflected in a more serious deficiency that is commonly observed in management practice.  If a manager cannot rectify a performance deficiency they seem to imply that this is not their responsibility but solely that of the individual.

These situations end up with a management style of “I point out your weaknesses and you have to fix them”.  If one considers the fact that research tells us that the main reason people leave jobs is dissatisfaction with the way in which they are managed (Institute of Directors, UK survey, 2001), then managers’ inability to coach and develop may be having a much more serious impact.

Conversely, a good coach does more than just coach.  In order for a coach to be effective they must have a reasonable grasp of:

  • Performance management;
  • Motivation;
  • Counselling;
  • Development and support;
  • Evaluation and feedback;
  • Performance measurement;

Feedback also tells us that competent coaches add value to staff and have much better relationships with their people.  Creating a competent coach therefore, also creates competency in a number of essential areas.

Edward Johnson, one of the founding members of the Johnson and Johnson empire, was famously quoted as saying, ‘Leadership is cause, all else is effect.’  Leaders of people must all be aware that it is their behaviour, not the training department, which determines whether your people will out-perform the competition.

References

Douglas Detterman and Robert Steinberg, Transfer on Trial: Intelligence, Cognition and Instruction, Ablex Publishing, 1993

Geary Rummler and Alan Brache, Improving Performance: How to Manage the White Space in the Organisation Chart, 2nd ed, Jossey Bass, San Francisco, 1995.

Source:

Peter Fullbrook, Founder, Prosell

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Performance●Productivity●Profit

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Counting the cost of e-mail

When it comes to e-mail, there is not a lot of things that shock me anymore.  I have seen inboxes with 28,000 e-mails in them. I have seen people who send e-mails to themselves to remind themselves that they need to action an e-mail already in their inbox. I have seen people who have given up and just deleted the lot!  But in a recent workshop on e-mail management at one of the big four banks, a participant shared how his team had been involved in a project to reduce the size (and therefore cost) of their mailboxes.  All of the support and maintenance for these was outsourced, so the costs involved were very tangible.  In the end, by decreasing the size of 100 mailboxes in the team, they have created a saving of $20,000 to $30,000 per year!  Staggering!  Imagine that across the broader organisation of 22,000 mailboxes.

That must be a drop in the ocean though, compared to the actual cost of e-mail in productivity terms.  Another recent conversation with a senior management team within a global financial institution uncovered the fact that these senior managers, who all wanted to spend more time with their people or working on strategic initiatives, were spending up to 5 hours per day just on e-mail.  They were drowning in a sea of CC’s, distribution lists and inbox noise.  And what about the cost of overfull and messy inboxes, the cost of searching for that critical but elusive e-mail you received last month, the cost of spending the first half-hour of the day deleting enough e-mail in response to the dreaded “Your mailbox is full” message.

E-mails cost time, and not just the recipient’s time, but also the sender’s time.  If the e-mail is internal the organisation may pay twice, if it is not adding value!  My goodness, I thought that e-mail was meant to be making us more productive.  The good news is though, it still can.  Although e-mail volumes have shot up for most workers, and become a large contributor to long hours and stress, it is still a fantastic way to communicate, and get information from A to B (or B, C,D and E all at once).  The trick to making e-mail work for you, rather than you working for it, is in understanding its traps and applying a set of principles to managing it.

The common e-mail traps and how to avoid them

E-mail is a core part of modern work life, and whilst it has improved the speed and efficiency of communication enormously, it comes with baggage attached (excuse the pun).  The common e-mail traps that I encounter with workers across the board are:

Making e-mail # 1 – E-mail has become our prime focus during the workday, and often outside of core work hours too.  We must remember that it is just a part of our role – a tube for getting information from one place to another.  It is not the main game, and not what we will be measured against come the end of the year.  We need to learn to make e-mail management a part of our day, to deal with it at regular intervals, and then to put it away to focus on our priorities and commitments. 

  • Turn off e-mail alerts and alarms, they are just distractions from other work
  • Check e-mail at regular intervals, between 3 and 6 times per day
  • Check handheld e-mail devices at appropriate times, but turn off when it is time to focus

 

Too many e-mails – 30, 50, 100 per day and counting.  I recently worked with two poor souls who were getting over 1000 e-mails per day! Ridiculous!  Many feel that they cannot control what is sent to them, but with some concerted effort and creativity you can slash the deluge to a more manageable flow.

  • Get off unnecessary distribution lists and e-mail subscription lists
  • Discuss your expectations with your team about when and what to CC you on
  • Set up e-mail rules to automatically delete or move (file) informational e-mails
  • Send less e-mails (you will receive less as a result)

Overfull Inboxes – Messy, overfull and back-logged inboxes cause stress, delays, confusion and rework.  Many workers use their Inbox as a to-do list, and the act of checking e-mail is often an advanced form of procrastination.  The inbox ends up as an unruly mix of stuff you have not looked at yet mixed in with existing e-mails that need action, or should be deleted or filed. For the truly in-control e-mail manager, the Inbox is a delivery dock.  And just like the delivery dock of a supermarket, it should be cleared, to zero, weekly, if not daily.

  • Set up a simple filing system (1 – 10 folders) to keep necessary e-mail

Poorly written e-mail – One of the stresses associated with e-mail is the irrational feeling that we need to respond to every e-mail.  We know this is not true, but it feels that way sometimes.  But, even with the percentage that we do need to respond to, time can be saved by learning to compose e-mails in a clear, efficient manner.  The clearer your e-mail is to the reader, the more cut-through you will have, and the more likely they are to action your e-mail in a timely way.  Remember, your e-mail for them is probably just one of 100 that day.

  • Write clear subject lines with impact – most people scan, so stand out from the crowd
  • State any actions required and due dates in the first line or two of the e-mail

In a world where time is money, and human resources account for the largest chunk of any organisations overheads, it seems a no-brainer to get better at managing the effect that e-mail has on our productivity.  Rather than organisations putting pressure on staff to work longer hours to get things done, why not focus on helping them make their core workday more productive.  The savings could be huge, and I promise you, everyone will be happier!

Source:
Dermot Crowley - Founder
Adapt Training

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An Opportunity for Global Action in Redesign

How to Redesign the world...

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Performance●Productivity●Profit

Posted via email from Total Executive

What's next for you?

This review from overseas has a lot of information...

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Performance●Productivity●Profit

Posted via email from Total Executive

Monday, May 30, 2011

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Posted via email from totalexeconline

How to Connect and Getting the most from your Total Executive membership

Total Executive Membership Newsletter
Hello 

Welcome to our May 2011 Membership Newsletter with a variety of Exclusive Total Executive Member Benefits (highlighted below)*

 for You

Complete our survey on the Sustainability of Business here

Total Executive Views
Two recent articles on Total Executive Views:

Creating a New Normal - How do you Do it?

How individuals and organisations respond to life changing events will determine the outcomes they experience.
How do you move forward from catastrophic events like those experienced in Queensland, Christchurch, Japan and many other countries this year?
Leaders of organisations can learn a lot from how successful response to devastation is conducted.
Learn more here


To discuss how our leading providers are improving engagement and direction - for executives and their staff - Contact Us

Scan the World for Strategic Advantage via Innovation

Consider how to make your business authentically local as the global speed to innovate for future business growth is accelerating as explained in the video here


To communicate with companies who are Australian Leaders in the innovation field Contact Us

People Development Tips*

As an Executive - are you getting the best executive offer available for your personal skills?

As a Recruiter - are you accessing the full market of quality talent - in the most effective way?

Total Executive have a new partner that can help you move forward efficiently here


Communications Tools*

Brainstorming is DEAD!

Do you get maximum future benefit from your internal communications and idea generation?

It's time to forget the Brainstorm and start Facilitating Action as shown in the Research Study here


Media Advantage*

Have you received the best deal for your communications and media spend?

Learn how we can help you communicate with business decision makers in the Innovation Community here


To discuss sponsorship and advertising options across digital, online, print publications and social networks which communicate with executives, Plus events and intimate executive gatherings Contact Us

Leadership Articles and Interviews

Is your business erring on the edge of HOMOPHYLY?

How familiar are the people around you? Check out a common problem in leadership explained on video here

View dozens of recent leadership articles here


Sustainability Survey & Response

With all the Huff and Puff about Climate Change you may expect an article on whether celebrities should sell new government policies under this heading...

NO:


Our sustainability survey is:

How Sustainable is your Business? - Complete the 1 minute survey here
You can receive complimentary professional feedback from Total Executive vetted providers.


Communication and Technology Articles


Is Someone Else Getting all your Media Attention?

Are you taking advantage of all the millions of dollars of complimentary coverage available as explained here?

View dozens of articles on communication here


How Healthy is your Digital Consumption? Could you have ADHD?

I came across this article and thought the media were making fun of people with disabilities.
Though, how does this relate to you?

View dozens of technology articles here


Total Executive Interviews and Reviews


Keys to Successful Entrepreneurs in Eastern and Western Cultures
It's time to forget the Brainstorm and start Facilitating Action as shown in the research study here


Leadership begins with Good Communication and Trust
Broni explains how communication needs to provide information on what you want to achieve across business here

View dozens of interviews and reviews with leaders here


Total Executive Exclusive Educational Benefits*
Total Executive members have access to exclusive benefits when studying, like those shown here

Contact us to discuss exclusive benefits for your staff and direct family members


Upcoming Events with Exclusive TE Member Benefits*...

Your Total Executive membership entitles you to receive exclusive benefits when booking and attending conferences, events and forums.

To book any program below with Total Executive benefits simply reply to this email with your contact details... we arrange the rest for you.


Understanding the Keys to Building a High Performance Workforce
Complimentary Breakfast

Join Jon Scriven - Group Executive People and Corporate Services of QANTAS for a complimentary breakfast thanks to COI Group and Total Executive
For details and to book with exclusive benefits click here


Masterclass - Leading Learning: The Purpose Role and Practise of Leadership:
What difference would it make if your leadership team really understood your organisations social impact?
Do you need fresh impetus and inspiration in leadership development?

Available with Total Executive benefits... details here


Building Relationship Versatility Workshop
Build better business relationships and thrive at work!
Book with exclusive Total Executive benefits here


Meet Graeme Samuel - Chairman of the ACCC
Enjoy a luncheon with Graeme and Total Executive benefits here


Hargraves have a variety of future events

For details and to book with exclusive Total Executive benefits click on the links below...

Hargraves Congress 2011
Complimentary Event for TE Members - Brisbane - For Details and to book clickHere

Hargraves NPD Summit III
Complimentary Event for TE Members - Sydney - For details and to Book clickHere

Hargraves Congress 2011
Complimentary Event for TE Members - Sydney - For Details and to book clickHere

Hargraves Congress 2011
Complimentary Event for TE Members - Melbourne - For Details and to book clickHere

Getting Results Without Authority
Melbourne - For details and to Book click Here

Hargraves Conference2012
Melbourne - For details and to Book click Here


View the full programme calendar that we expand on here


To have your event promoted Contact Us

Have you Trained your Brain Lately?

Measure your level of Information Processing Skills Here

View many more Brain Training Exercises here


Register Now*
Your peers and colleagues can currently register for complimentary 2011/2012 Total Executive membership here saving $495:00


Search by Subject
Search the Total Executive Knowledge Bank by key subjects we cover here

You are receiving this newsletter because you have either previously been a client of Total Executive and the companies we have supported, or have been in communication with one of our team and suggested that you would be interested in learning more about Leadership, Sustainability, Responsibility, Technology and/or Communication. If you believe you have received this email incorrectly, you may select to unsubscribe using the link below

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Thursday, May 26, 2011

Quick 16 Question Quiz For Measuring Software Companies

The Dharmesh Test is a quick, simple set of yes/no questions to gauge the likelihood of long-term success of a SaaS (Software as a Service) company.  It is inspired by the highly popular “Joel Test” for measuring software development teams.  [Disclosure: I am an angel investor in Joel’s company Stack Overflow]

OnStartups YesNo

Now, if you know me, and you know Joel, you know that I'm no Joel.  He's smarter and is a better writer.  So, why did I have the audacity to write the "Dharmesh Test"?  Because I'm passionate about SaaS companies and have spent the better part of the last 6 years studying them and learning from folks that should have written this article.  And, I've taken what I've learned and applied it to my own company, HubSpot -- which is doing very well and scores a respectable 13/16 on the test (yes, I've got work to do).

This is alpha Version 0.80 of this test.  Will be iterating on it based on community feedback.

The Dharmesh Test: 16 Questions For Better SaaS Companies

1. Is there exactly one version of your software that services all users?

Or stated differently, have you resisted the temptation to have custom code for an individual customer or small group of customers?  Ideally, in steady state, the same master code-base would be servicingall customers.  Any customizations are done through application configuration or via APIs and plugins.  If you have different versions running temporarily to test new versions with a subset of customers, that’s fine.

2. Do you have a free trial?

Not only does a free trial increase your likelihood of getting more customers, it often improves the simplicity of the product.  Many companies can’t have free trials because the product is just too complicated and requires too much human assistance to really “try” it. That's a bad thing.  Freemium (where you have a free version of your product that's feature-limited, not time-limited) counts too. 

3. Do you track key metrics like CAC, LTV and cancellation rate?

CAC = Customer Acquisition Cost. This is the total sales expense and marketing expense (salaries, programs, etc.) over a specific period (lets say a month) divided by the number of customers acquired in that month.

Cancellation Rate / Churn Rate:  A percentage calculated as the number of customers that cancel in a month divided by the number of customer at the beginning of the month.

LTV =  Lifetime Value of a customer.  Based on how long the average customer is expected to stay (a function of cancellation rate) and the average revenue.

The reason these numbers are important is simple:  They are the key metrics that will help you drive a SaaS company.  It answers questions around how much capital you need, how much you should be investing in product, whether customers are generally happy (or not), etc.

Example:  KissMetrics gets this stuff (because that's what they do.  And, if you're not yet reading David Skok's For Entrepreneurs blog, you should be.  Brilliant material on this topic.

4. Are your prices published on your website?

It is decidedly sub-optimal if people have to get a custom quote or talk to a human just to know what your price is.  Increasingly, the market values simplicity and transparency. If you’re not providing easy access to information, potential customers will go elsewhere.

5. Can people start paying you (become a customer) without interacting with a human?

The way of the world is frictionless web sales.  There's nothing quite like the joy of having your revenues go up and 4:00 a.m. in the morning on a Saturday -- without anyone having to talk to anyone.

6. Do you make more money from users that are getting more value?

Is there some “variable” component to your pricing?  Do you charge based on number of users, storage, frequency of use or some other metric?  If you have the ability to make more revenue from customers over time (without having to upsell them), that’s high margin business and very desirable.  By the way, the ideal state is when there are "in product" upgrade paths.  Customer reaches a certain limit and "upgrades" (starts paying you more) without you having to do anything.

7. Does your application have a simple, clean API (Application Programming Interface)?

The web is not just about connecting static websites — it’s now about connecting applications.  Without an API, your application is an island.  It’s unlikely that you will be able to meet all the needs of your customers.  An API allows you to integrate with third-parties (and they to you) to deliver a more complete solution for the customer. These kinds of integrations are also great ways to spread the word about your product (the more people that integrate with you, the more reach you have).

8. Can customers export their data out of your system?

To get more people to use/buy your product, you need to reduce not just the barrier to entry, but also the barrier to exit.  The product should be what keeps customers to stay with you — not data lock-in.  If you try to use data lock-in, fewer people will pick you in the first place.

9. Can you deploy (and rollback) a new version of the software in one-step without downtime?

This is to measure the effectiveness of your technical operations and software release tooling. Companies that have easy ways to deploy/rollback software tend to have more confidence and release more often.  Companies that release often tend to do better than those that don't.

10. Is there an online community where users can interact with your team and with other users?

Ideally , everyone in your company should be interacting with customers.  Especially developers.  And, customers should be able to talk about you (even if it's negative) online and interact with other customers.  [Note: I'm not talking here about "automatic" online venues that form -- but something that you are actively fostering and encouraging]

11. Do new developers commit code on their first day at work?

This is partly to measure how difficult your development environment is to setup and what controls you have in place.  If it takes 4 days for a developer to get their development environment setup, something's wrong.  If you’re too scared to have a rookie commit code to production, because it might bring the entire system down, something's wrong (you haven’t built a strong enough safety net yet).  It shouldn’t be that easy to break your system.  [Nod to Eric Ries for this one].

Example:  Cheezburger Network doesn't show new employees where the bathroom is until they've committed code.

12. Do you release code to production at least once a month?

This is to check whether or not you’re agile.  The challenge these days is that everyone thinks they’re agile, so asking "are you agile" is ineffective.  The proof is in the pudding.  Real agile teams release code — frequently.  Everything else is secondary.

13. Do you maintain a centralized backlog of new product ideas, bugs and issues?

Ideally, not only would you have a central database of ideas, but you'd provide the ability for customers to submit ideas and vote on other people's ideas. 

14. Do you regularly run A/B (split) tests?

Great SaaS companies are great at testing and deciding with data.  You should be running regular tests (as in several times a month).  Example tests: Should we remove this feature (does anyone care?).  Should we increase our price to $75?  

So, how did you do?  Given that this is "alpha build 1" of the test, what additional questions should I have included?  Are there any that you think aren't relevant that should be removed? 

Example: A company that does this really well is FreshBooks. If you run into Mike McDerment, ask him about how they built their product to facilitate testing.  (He probably won't tell you, but doesn't hurt to try).  I also think SEOmoz (hi Rand!) does a great job at this.

15. Do you invest in design and user experience?

Customer expectations (even for B2B companies) are high on the web.  Having crappy design might be OK if you happen to have a product that people can't help but use -- but most of us are not in such forgiving circumstances.  Great design not only helps you attract customers, it helps you keep them -- and get referrals.  Profitable design is when you spend effort in design that is centered around your business objectives. 

Examples:  I like Campaign Monitor a lot.  Heck, even their API documentation site is beautiful.  But there are other examples.  There's the ever-popular 37signals

16. Does your company or product have a personality?

This is the squishiest of the questions -- but it's important.  Great software companies today have a personality and a voice.  They're distinctive and remarkable.  Whether it's through their blog, through the copywriting in the product (like error messages), or through in-person interactions, some companies just have personality.

Examples: Take a look at Wufoo or ZenDesk does.  Quirky?  Yes.  Effective?  Absolutely.

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So, how did you do?  Any questions you think are unimportant and should have been left out?  Any you'd add?

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